Make real estate
investment a snap
See Page 23 See Page 15
EDMONTON/NORTH FEBRUARY 9, 2007 – VOL. 7, NO. 3 NEWSSTAND $2
Home-care crisis looms nationwide
BANKING ON THE FUTURE Staff shortages
By Laura Severs
silver tsunami is about
to hit Canada’s home-
A l ready faced with
labour shortages in parts of the
country, the home-care system,
which provides community sup-
ports to enable people to stay in
their homes, is expected to be rap-
idly engulfed by an aging demo-
graphic that could put even more
stress on health-care providers.
But while home-care compa-
nies and organizations prepare for
the future, they’re already dealing
with a more immediate concern:
A lack of staff.
“In many ways we tried to avoid
the ‘c’ word but it is a crisis.There
are many people throughout the
province (of Alberta) whose care is
not being fully serviced as a
result,” says Wes Campbell, presi-
dent of the Alberta Home Care
and Support Association (AHSA),
which represents 65 member not-
f o r - p ro f i t , private and publ i c
organizations servicing 50,000
While labour shortages are no
longer news in that province,
other regions across Canada are
having problems in finding and
retaining home-care workers.
Larry MacDougal, Business Edge
See WAVE Page 3
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Page 2 February 9, 2007
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George Lewis has grown his commodity prices. ment age to offset a labour to encourage their older work- Business Link, #100, 10237
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■ FINANCIAL EDGE his idea-fermenter are at the Human Resources Minister Ontario last year scrapped (E-mail your events at least two
Jean-Francois Tardif of Sprott forefront of ‘crowdsourced Monte Solberg said the short- mandatory retirement, allowing weeks before publication date to
Asset Management is still a fan software.’ age is serious. Solberg says the people to work past 65 if they firstname.lastname@example.org. For online
of the energy and gold sectors. Page 30 panel will look for ways to choose. listings, visit www.businessedge.ca)
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February 9, 2007 Page 3
WAVE from Page 1
Alberta cities lead way in acute shortages
Mississauga-based Bayshore Boomers into retirement age – and they would hire me imme- “We had close to 350 people “This didn’t happen overnight.
Home Health, which describes a wave that could well result in diately and pay me more than resign last year for better pay It developed over several
itself as the largest home-care a greater need for assistance. $13 an hour,” says Campbell. and better hours,” adds years.
provider in Canada, says it is It’s in B.C. where this silver “There’s not an economic or a Hildebrandt. “No. 1, we have to figure out
running into difficulties in tsunami is likely to hit hardest. time commitment incentive.” Industry insiders say there is a better and more effective ways
various parts of the country. Currently home to some The BCCPA’s Kate Hilde- light at the end of the tunnel, to attract people to health-care
From Bayshore’s perspective, 588,000 seniors, 25 years from brandt, the association’s director though it will take time. careers.
the shortage is most acute in now that number will more of public relations, says they’re “Unfortunately, t h e re ’s no
the following cities, in order: than double to 1.3 million dealing with some similar issues. quick fixes,” says Campbell. See RATES Page 4
Calgary, Edmonton, Vancouver, seniors. “Some of our colleges are
Winnipeg and Halifax, says One in four British doing well in recruiting new
Janet Daglish, d i rector of Columbians will be a senior students and others have
community partnerships for by 2031, according to the BC stopped the program because
Bayshore. C a re Providers Association of a lack of enrolment, such
It’s also not ideal in Ontario. (BCCPA), a non-profit organi- as in the Okanagan and
However the Ontario Home zation representing non-profit northern B.C., with officials
Care Association (OHCA), and private facilities and agen- there attributing it to better
which represents home health- cies and suppliers, including opportunities in the oilpatch,”
care organizations that provide Home Support members, that says Hildebrandt.
home-care services to an esti- provide services to more than “And there’s better opportu-
mated 250,000 clients annually, 10,000 clients each year. nities at Tim Hortons. You can
says the labour situation is not Overall, Canada’s senior pop- get a full-time job there in
as bad in that province. ulation will double from 3.5 northern B.C. at $15 an hour,
“Ontario is experiencing the million to an estimated 6.9 you don’t have to work
same challenges in recruiting all million by 2021, says the Public nights and it’s easier and clean
types of home-care workers – Health Agency of Canada. work.”
nurses, therapists and personal But demographics are just Hildebrandt says another
support workers,” says OHCA part of the picture. A booming issue is also salary re l a t e d .
executive director Sue Vander- economy is another. “We’re hearing different prob-
Bent. “We’re challenged by several lems in different pockets of our
However, home care is the factors,” says the ASHA’s province,” she says, pointing to
next wave of the future for Campbell. “One is the booming tourism development “The site has helped to
h e a l t h - c a re provision, says economic engine that’s driving in B.C.’s Interior, particularly contribute in excess of
VanderBent. Alberta – in and of itself, it around Radium Hot Springs. $1,000,000 and a 25%
“If Canada goes the same creates pressure for labour and “There’s so much tourism re you frustrated your site
way as Europe, we will expand
and enhance our home-care
that’s well documented.”
Add in declining enrolments
development (there). Boomers
are going into early retirement
A is NOT on Page 1 of
Google? Could your web site
increase in our business
in the last year.”
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to stay at home,” she says. care attendants and an aging communities, they’re moving www.bridgeviewmarine.com
Do you have a quality web
“That’s where people re a l l y wo r k f o rce where people are here from Calgary and Europe statistics program for tracking received numerous entrepre-
want to be. retiring faster than they can be – when you’ve got that kind of your return on investment? neur awards, has the blueprint
“People want to live in their replaced, and you have a more development going on, there If you have a shopping cart, for success to show you how
own homes and stay there and complete look at the challenges are so many opportunities in does it work properly and is it it’s done online. Get the
age there as long as they can.” faced by this industry. the trades.” converting sales for you? Can answers you are looking for
Home care encompasses a “I can go to school for four This results in a lot of young
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wide range of services from months and get my personal- people choosing a lucrative
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Page 4 February 9, 2007
RATES from Page 3
Invest in Prime Raw Land within Airdrie City Limits
looking at ‘rehirement’
“No. 2, we have to increase our No. 1 initiative as we roll
our retention rates. No. 3, we out our franchise program
h ave to be aggre s s ive with across Canada,” says DeHart.
the ESL (English as a second “We’re taking it into our own
language) candidates. We need hands, we’re creating our own
to be very, very creative in the internal programs so we can
way we provide compensation find workers who become
and benefits. We also need to great caregivers and teach them
be competitive in our wages to become home-care workers.
and benefits programs,” s ay s “We call it our ‘rehirement’
Campbell. versus re t i re ment solution.
Hildebrandt agrees, adding There’s a whole group of older
not enough people know about mature individuals that have a
the industry, the career choices passion for what we do but
it offers and the possibilities for don’t have the skills or the
advancement in the field. training to do it.We’re piloting
There’s also a cultural shift to it now, creating an entire pro-
deal with, in a society where a gram around finding older Aveiro Investment Corp. has • Pre-IPO Share Placement
younger generation cares more mature individuals and teach- recently agreed to acquire a
about themselves than they do ing and training them to 77-acre parcel of land in the • RRSP eligible (new
for others. become caregivers.” City of Airdrie, designated in contribution or transfer-in), To learn more about
the Area Structure Plan for RESP, RRIF, LIRA eligible this incredible investment
Meanwhile, one private-sec- Many of the company’s best opportunity, contact
tor home-care provider, Nurse caregivers are individuals over Industrial use. Airdrie is the Susan Busse:
Next Door, headquartered in the age of 65, DeHart adds. second-fastest growing city in • Management team with
Vancouver, believes it has found Bayshore has also developed Alberta (after Fort McMurray) extensive business and real D: (403) 921-3696
its own solution. its own plan to deal with the and industrial land in Airdrie estate experience O: (403) 237-6800
Created in 2001 as a result of labour concerns. and Calgary is in short supply. email@example.com
their personal experiences of It offers programs to help
trying to find the right caregiv- recent nu rsing grads to enter
er for their own family mem- the home-care sector including
bers, John DeHart and Ken Sim teaming senior nu rses with
are now in expansion mode. young nu rses entering the
In March, Nurse Next Door
will open offices in Burnaby,
home-care field, so newer staff
can get the support they need.
Looking for top value for your
Kamloops and White Rock and It’s using late-career nurses
plans are to have 10 franchises
up and running in B.C. by the
in educator ro l e s , increasing
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In 2008, Nurse Next Door
will look at expanding into
both Alberta and Ontario.
role, as well as boosting support
levels for personal-care workers
or home-care aides.
Look no further!
“The whole labour shortage (Laura Severs can be reached at With its editorial excellence and unrivalled distribution, Business Edge News Magazine
is a big issue in our industry. It’s firstname.lastname@example.org) presents an affordable and highly effective vehicle through which your business can speak
directly to a massive audience of high-income consumers and business decision makers.
Aboriginals cash in on Compelling editorial content has always been a foundation of our business, but
the Edge’s distribution to 180,000+ Canadian companies truly sets us apart from
tight labour market our competitors.
Business Edge Alberta led job growth in the Business Edge advertisers can target any or all of our four editions
West, with a 43-per-cent
(Ontario, Man/Sask, Alberta and B.C.), reaching the majority of business addresses
Aboriginal people in Western increase in its gross domestic
Canada are benefiting fro m p roduct between 2002 and in the major centres. There is always comprehensive coverage of the downtown districts
tight labour market conditions, 2005 and an unemployment in Toronto, Vancouver, Calgary and Edmonton. Rotating distribution, meanwhile, ensures
according to a Statistics Canada rate of 3.9 per cent in 2005. that over the course of two issues advertisers can reach about 98 per cent of business
study. Not surprisingly, Aboriginal
addresses through Canada Post in all of the cities below.
Aboriginal employment people in Alberta had the high-
increased 23 per cent between est labour force participation
2001 and 2005, twice the rate, 70 per cent of the work- Minimum number of businesses reached per edition*:
growth rate of only 11 per ing-age population, as well as Toronto 33,000 Winnipeg 9,300 Calgary 28,000 Vancouver 26,000
cent for non-Aboriginals, the highest employment rate (64 Mississauga 11,200 Saskatoon 3,100 Edmonton 14,500 Richmond 4,200
study found. per cent) and the lowest unem- Markham 3,900 Regina 2,900 Red Deer 1,800 Surrey 4,300
During the same period, the ployment rate (8.5 per cent). Ottawa 10,700 Grand Prairie 1,300 Burnaby 2,300
Aboriginal unemployment rate The study showed that post- London 5,250 Fort McMurray 1,250 Victoria 4,350
fell from 15.5 per cent to 12.1 secondary education helps Banff 200 Nanaimo 1,350
per cent, while the participa- eliminate the employment gap. Canmore 225 Kelowna 2,500
Lethbridge 1,500 Kamloops 1,550
tion rate ro s e, particularly Aboriginal people who held a
among women. unive rsity degree had an
Nevertheless, significant dis- employment rate of 84 per * Individual city circulation numbers are all more than 50% of total business addresses per city based on Canada
parities remain, says Statistics cent, surpassing the rate of 77 Post unaddressed mail data as of Sept. 1, 2006.
Canada. In 2005, the unem- per cent among the non-
ployment rate of the Aboriginal Aboriginal population. Contact us now for more information
population was 2.5 times that Among the least educated, on advertising in Business Edge
of non-Aboriginal population. that is, those with no high
Also, the employment gap was school diploma, employment 1.866.216.3343 ext 25
high in cities such as Regina rates were low for both Ads@BusinessEdge.ca
and Saskatoon. populations.
February 9, 2007 Page 5
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* Based on 5.2 readers per copy established in the independently conducted Business Edge Readership Survey.
Page 6 February 9, 2007
Feds’ energy initiative set to fire up green tech
By Monte Stewart ment will help investors, p u r- want strict prerequisites to be can release those hydrocarbons mercialized, he adds. Bennett
Business Edge chasers, regulators and other met. without damaging the environ- has discussed the issue with fed-
interested parties to minimize Kinkaide suggests Alberta has ment? eral Natural Resources Minister
evelopers of new tech- their risk when it comes to a chance to become a world “The sensible thing to do is Gary Lunn, but the B.C. m i n i s-
D nologies and renewable-
energy sources are lauding the
spending on renewables.
“When you look at new
leader in green technolog ies,
like it is in energy. While some
to go at it.”
Such technology is already
ter declined to discuss his spe-
cific federal funding requests.
federal government’s $2 billion technologies and the imple- people may debate the scientif- available in the world, but it (Monte Stewart can be reached at
funding for environmental pro- mentation of innovative tech- ic need for environmental tech- needs to be refined and com- email@example.com)
grams, saying it will boost nologies, there is often techni- n o l ogies, he adds, t h ey are
investment in green technolo- cal uncertainty,” says Neate.“So clearly in high demand. Advertisement
gies and early-stage startup that’s one of the key areas that “I’ve seen a considerabl e
But environmentalists say the
these types of initiatives, poten-
tially, can actually address.”
number of companies in the
last six months that are zeroed
Are YOU Making the Most Out
Tory program falls short of Neate is also the president of in on alternative-energy forms Of Your Customer Relationships?
what the former Liberal gov- ETV Canada Inc., which runs that are green and clean – the
ernment proposed, and some the Canadian environmental bio-economy in particular
Announcing a FREE service to help you attract
observers have attributed the technical verification program (and) bio-diesel,” says Kinkaide.
announcement largely to for the federal environment But in Alberta, early-stage more clients and improve your cash flow.
Liberal Leader Stéphane Dion’s ministry. He says the new pro- tech companies that operate
strategy to emphasize the envi- grams will ease the concerns of outside the energy sector have Calgary, AB – It’s a proven fact that up to 63% of your clients
ronment in the next election. inve s t o rs and re g u l a t o rs who are been hindered in attempts to will buy elsewhere due to indifference. Learn how to maximize
The ecoENERGY Efficien- concerned about the credibility gain financing, because oil and your customer relationships … while improving your bottom line
cy Initiative includes a $1.5 bil- of new technologies and users’ gas companies receive up to 30 bank balance. Depending on your business, a 5% increase in
lion investment in renewable ability to understand them. per cent of new - i nvestment customer retention CAN mean up to a 95% boost to your year-
energy supplies; $300 million The ETV program provides dollars back from the provincial end profits.
for energy-efficiency systems in independent verification that government. To receive your FREE training dvd and 2 marketing
homes, small buildings and reported benefits of new tech- “That discourages anyone to booklets (Creative Marketing Tips and Maximum Profits In
industries; and $230 million for nologies are true. Neate says the put money elsew h e re,” says Minimum Time), all designed to help find the greatest
projects that research, develop new federal programs should Kinkaide. opportunities to improve your marketing, fill out the form at
and demonstrate clean-energy have built-in reporting mecha- Bill Bennett, the B.C. minis- CreativeMarketingTips.com and everything will be mailed
technologies. nisms to ensure that new pro- ter of state for mining, says he out to you immediately.
But companies and industry jects deliver on their promises. would like to see some of the Or, if you prefer to leave your name and mailing address via
associations want more specific “In some areas, there does money put toward projects that message – leave your details at 403.259.4566.
details on how the programs need to be a hard look at the use coal-based energy to This is 100% free. There are no sponsored links, no pop-up
will work, how the money will payback and the implications,” sequester greenhouse gasses. ads, no banner ads and nothing you have to buy.
be used and how the recipients says Neate. “B.C. has more coal than any Why? Because Business Edge Readers are among the best
will be held accountable. Donald McInnes, president of other hydrocarbon re s o u rce,” entrepreneurs I’ve ever worked with, and this is my way of
“I’d like to make sure that Vancouver-based Plutonic says Bennett. “The reserves of giving back. (Go to the website to find out who I am). See the
(funding) is quite broad, that Power Corp., which is building coal we have in this province webpage for Forbes endorsement of this material.
it’s not so tight and narrow three run-of-river hy d ro are phenomenal. Are we going One last thing: In 2006, one of my clients sold 1,175 products
that it simply becomes a projects as part of 38 power to just let them sit there and
in 48 hours during a new launch – - another sold 20,500 books
nice news release that never contracts that were awarded by pretend that they’re not there
in 24 days, ALL using the techniques you get here for free.
reaches anybody,” s ays Perry BC Hydro last year, says the and not use them? Or are we
Call now. No catch.
Kinkaide, president and CEO federal funding will stimulate going to spend the money on
of the Edmonton-based Alberta the construction of more research and figure out how we
Council of Te c h n o l ogies renewable energy projects.
(ABCTech). McInnes says the scrapped
“More importantly, (the pro- Liberal program was “extreme-
gram) should be designed in ly prejudicial” to B.C. inde-
such a way that it can be used pendent power pro d u c e rs
by, and possibly leveraged by, because it would have limited
early-stage startups. I’m not funding to B.C. projects that
going to pick which technolo- had a maximum capacity of 50
gy should be the right one. megawatts.
More importantly, they’re zero- He says the new federal
ing in on the environment and, money will enable his firm to
hopefully, it’s packaged in such offer electricity at cheaper
a way that makes it easy to use.” prices when BC Hydro issues
ABCTech represents individ- another call for tender on
uals from companies that devel- power projects this year.
op technologies ranging from Consumers will also benefit,
carbon sequestration to tele- he adds, because companies will
communications. Kinkaide says be able to sell electricity to util-
the money will benefit firms ities at lower prices – because
that operate and produce tech- re n ewa bles are usually more
nologies for use outside major expensive than coal-fired facili-
cities. ties – and the supply of power
“There’s been an awful lot of will increase.
consultation going on to help ABCTech’s Kinkaide says the
small-town, rural communities money may also help early-
– and it’s time somebody put stage companies deal with diffi-
their money where their mouth culties getting financing from
is,” says Kinkaide, whose group investors. Institutional investors
is touring southern Alberta can get “very nervous” about
communities early this month new technologies and simply
in a bid to help launch new don’t look at them, because
businesses. they want an asset that can back
John Neate, acting chief oper- up their investment.
ating officer for the Ontario Many startups depend on
Council for Environmental angel investors, but angels,
Technology Advancement, says who provide anywhere from
the “great” federal announce- $50,000 up to $1.5 million, also
February 9, 2007 Page 7
Page 8 February 9, 2007
Experience biggest asset for RBC executive
By Monte Stewart auditing of financial statements
Business Edge allowed owners to have confidence
in, and a way of administering, the
magine that you go to work people who were managing their
I every day and look after $300
billion of other people’s money.
Now you have an idea of
what it’s like to be George Lewis,
chairman and CEO of RBC Asset
businesses for them. It’s a wonderful
early career. It could be a wonderful
late career for many people. But it’s a
wonderful early career, because you
get exposed to a number of different
Management (RBCAM) Inc. businesses as an auditor. I found that
Lewis doesn’t look after all of (experience) very valuable.”
RBCAM clients’ assets by himself. 6. What was it like trying to get
But it’s his job to hire, fire and into Harvard?
manage the other members of his “It’s an interesting story, because I
team who do. was enjoying being a public account-
Toronto-based RBCAM, which is ant. It was my wife who asked me
an indirect, wholly owned subsidiary to go back and get an MBA. It was
of Royal Bank of Canada (RBC), really on a spur of the moment that I
sells and advises investors on mutual applied to Harvard and Stanford. I
funds, pooled funds and portfolios viewed it as a once-in-a-lifetime
managed by other financial services opportunity to study in a very inter-
companies. esting place and meet a lot of very
RBCAM has snared the largest interesting people. It was before
market share of mutual fund assets – Leanne and I had children.We’ve had
about 10 per cent – under Lewis, a lot of special times.We’ve been very
who moved into his current post blessed, but that was a time that we
in 2000 after joining RBC in the look back on with particular fond-
“The (Canada Pension Plan) might 7. Who were some of your
catch us one day, with their built-in prominent classmates?
sales plan,” says Lewis. “But we’re very “Susan Decker, who is chief
privileged and we take that (privilege) financial officer of Yahoo Inc., which
seriously.” is now a major business. I noticed
RBC, which he joined after obtain- they reported good results (recently),
ing an MBA from Harvard University, so good for her. In addition to my
has “allowed me to have new chal- classmates, I was fortunate to have a
lenges over the years. I feel blessed number of professors who were very
with a great team. It’s a tremendously interesting. Michael Porter, a very
exciting position to have, because important person in terms of
we have a great momentum in the competitive strategy, was there at
marketplace and great business with the time. One of my professors for
our clients.When I get a chance to corporate finance was a gentleman
meet our clients, I always start by named Stephen Fenster, who
thanking them for their business, Larry MacDougal, Business Edge unfortunately passed away some time
because it is tremendously exciting RBC Asset Management chairman and CEO George Lewis is also a history ago. He was a partner at Lehman
and gratifying.” buff who has studied such political notables as Churchill and Roosevelt. Brothers, and he was instrumental in
Pending the next global recession, getting me interested in the capital
time will tell how grateful investors far away, and we both went to the 4. Since you felt that you markets and corporate finance
are to Lewis. An accountant by same school. We didn’t really get weren’t going to get into sports, business – which ultimately led
profession, he is also a history buff together until the last year of high what career did you dream of to RBC.”
who gains inspiration from such school.” following? 8. How did you end up joining
notables as Sir Winston Churchill, 2. What were some of your “I enjoyed all subjects in high RBC?
Abraham Lincoln and Franklin interests when you were growing school – the math and science and “It was very interesting. I joined
Delano Roosevelt. And he believes up? English and history – so it was Dominion Securities Pitfield from
that people – rather than market “I enjoyed sports, but was only difficult for me to choose what to Harvard. It was, and still is, Canada’s
forces – revolutionize economies. good at a few of them, one of which take at university. I chose (commerce) largest investment dealer. At the time,
Meanwhile, as the RRSP season was bowling. I still have the result of as an area to focus on in my under- Dominion Securities had grown
comes to a close, you may gain some that part of my life, in the form of graduate studies at the University of through acquisitions for the previous
insights in investment strategy from bowling trophies – which Leanne Toronto. It was more being interested five years, and therefore had not hired
Lewis, whose firm emphasizes doesn’t let me display – but they’re in something that I hadn’t had people into its investment-banking
product performance, people and in the attic somewhere. I played a exposure to, rather than a pre- area. It came down to Harvard in
value for money. little basketball and a little chess, determined view that I wanted to 1986 and three Canadians joined
1. Can you tell us a bit about everything from a recreational point travel down a certain career (path.)” from the class – myself, Peter Busey,
your early years? of view. I concluded that professional 5. When did you develop an who remains the head of the firm’s
“Well, I was born in Pembroke. sports was not a great thing for me to interest in accounting? mergers and acquisitions, and Stuart
Both my mom and dad were from aspire to.” “That really came during university. Burton. All three of us are still with
the Ottawa Valley, near Algonquin 3. What did your parents do? I initially thought that I might choose RBC. As you may recall, Canada’s
Park, and at the time Pembroke (had) “My father was a professional law as a career.When I got into the commercial banks – I think it was in
the nearest hospital. So that was the engineer and worked for the federal university program of commerce and 1986 or 1987 – were allowed to enter
only time I’ve been in Pembroke, government while we were in Ottawa finance, law was very interesting, into other businesses, such as invest-
actually. I grew up in Ottawa for my and then worked for the Ministry of because that was part of it. But I was ment banking and trust services, so
first five years and then my family Natural Resources in Ontario when very interested in accounting and RBC purchased Dominion Securities
moved to just outside Toronto. I we were in Toronto. My mom was a auditing because of the importance Pitfield in 1988.”
grew up in Markham, which is just teacher – and still is a teacher. I had that it has throughout the economy. 9. What was it like working on
northeast of Toronto. It was a great her as a teacher when I was in Grade Going back in time, to the Middle mergers and acquisitions with
community – and still is. I went to 3. It taught me the importance of Ages and early parts of developing RBC Capital Markets?
Markham District High School. delivering on expectations and economies, ownership and manage-
My wife Leanne lived not too performance early on.” ment were one. Accounting and the See 20 QUESTIONS Page 9
February 9, 2007 Page 9
20 QUESTIONS from Page 8
Placer Dome merger a career highlight
“It was great. About 50 per “RBC Asset Management is ago, we began to market our market leaders and managers products, which have become
cent of my time at RBC one of the businesses within funds with (the goal of) of those sales people.” very important as Baby
Capital Markets was spent in the overall wealth-manage- improving investment 13. How did RBC’s Asset Boomers age and there’s more
the mergers and acquisitions ment group of our Canadian performance and (offering) Management get such a focus harvesting one’s port-
area, working very closely with business and is Canada’s new products (through) large market share? folio. Our investment perform-
two gentleman, Bob Matthews largest single-fund company. external channels to brokers “We’re very pleased with the ance has been excellent. (In
and Gary Sugar – Gary The teams within asset and certified financial planners. confidence that Canadians and terms of) our five-year invest-
remains with capital markets – management are basically That now accounts for about advisers have shown in us.We ment record, I think 90 per
on mining mergers. One of divided into four areas.The 30 per cent of our sales. Our have led the industry in net cent of our clients are in the
the great experiences I had (sales) group is handled by our branch investment businesses sales for the last, I think, 40 top two quartiles. Secondly, we
was the ability to work with president Brenda Vince.They report through the wealth consecutive months. I can have focused a lot on the
them and advise on the merger deal through a number of management business line. But point to three reasons. One is development of our branch
of Placer Developments, Dome distribution partners, the we don’t directly manage those our product and investment investment salespeople
Mines and Campbell Red biggest one of which is our 7,500 people, they’re managed performance.We are focused . . . to give training around
Lake Mines to create which, at financial planning and branch by our regional presidents’ on portfolio solutions that advice and the ability to
the time, was the world’s investment people in Royal teams and we work very close- are tailored for clients’ handle all of the clients’
largest gold producer – Placer Bank branches across the ly with those teams. So we’re particular risk tolerances and financial-services needs.The
Dome.” country.We have 1,500 responsible for the product do automatic diversification third is value for money. I
10. Why did you become dedicated financial planners – development, the sales support into not only Canadian know that there’s a lot of
an analyst? some in-branch and some and content around training. markets, but also foreign appropriate focus on manage-
“RBC made an investment mobile – and another 7,500 We come out and do client markets.Those (foreign ment-expense ratios, as well
in New York in the merger people who are licensed to events with the sales people markets) have been very well as the fees for Canadian
and arbitrage area, and I was sell mutual funds across the (in) the field, but we look received by our clients and by mutual funds.
sent down to learn that busi- country and who (sell) other to our regional president our salespeople. Part of our
ness and work with the team products as well. Five years partners to really be our portfolio are our cashflow See CHARGES Page 10
that we invested in.We
ultimately concluded that we
would not stay with that
investment. RBC Capital
Markets wondered whether I
wanted to be in investment
banking, or the equity or
research area. I enjoy
writing, I enjoy analysing
and I enjoy reading – all
three things you need to
be a good analyst – and I
had, over the years, gotten
more comfortable with
presentations. So I joined
the (research) area in 1990.
Richard Stovell, who became
the director of research at
that time, was our utilities
analyst. So they were
looking for a pipeline and
utilities analyst and I fit
11. What prompted your
move to RBC’s Asset
“I’ve been very fortunate
with RBC in all the parts,
capital markets, wealth
management and banking, to
get a new opportunity every
three or four years. I was an
analyst with RBC Capital
Markets for a few years and
then was director of research
for that firm. In the late 1990s,
I had a great opportunity to
lead our institutional-equity
business and that gave me a
sense of (how that business
works.) In 2000, Reay Mackay,
who was the head of RBC
Investments at the time, and
Gord Nixon (president and
CEO of RBC Financial
Group) asked me to take on
the leadership of our asset-
management business – to
move to the buy side, if you
will. It was a wonderful
opportunity and I was very
pleased to take that on.”
12. How does RBC’s Asset
Page 10 February 9, 2007
CHARGES from Page 9
Diversification advised in portfolio strategy
Ninety-five per cent of our Chornous is our chief invest-
funds’ (charges) are below the GEORGE LEWIS ment officer and a member of
industry average and, in most my team. About a few months
cases, significantly below. ■ Title: Chairman and CEO of and acquisitions. He became ago, we had an opportunity.
Whenever there is a focus – RBC Asset Management Inc., a financial analyst and One of our portfolio managers
vice-chairman of RBC Wealth research director, and was
and there’s a continuing focus left the Global Titans Fund
Management. promoted to managing director
– on value for money, we tend and head of institutional
and I applied to Dan for the
■ Born/raised/age: Pembroke,
to do well.Those three things Ont./Ottawa and Markham, equity. In 2000, he was job of co-managing that fund
(have been the keys): Ont./46. appointed to head RBCAM. and he agreed. I told him he
Performance, people and value ■ Education: Commerce He also serves as vice- could fire me whenever he
for money.” degree from University of chairman of RBC Wealth wanted to, without any reper-
14. What do you think this Toronto, master of business Management, which oversees cussion.We’re looking for
RRSP season will be like? administration from Harvard the Canadian full-service leading companies with a
“We are optimistic about the University. Chartered brokerage business, RBC sustainable competitive ad-
current season. It tends to start accountant, certified Dominion Securities, RBC’s vantage in attractive industries,
financial analyst, certified self-directed brokerage
earlier and earlier. November where they have pricing power
by Institute of Corporate business RBC Direct Investing
and December were good and where there’s mutual
Directors. and personal trust-services
months for us and January is business Royal Trust. growth in demand.We look at
■ Family: Wife Leanne,
continuing (at the time of this RBCAM’s George Lewis valuation criteria quite closely,
son Elliott, 20, daughter Julia, ■ Moonlighting: Member of
interview.) We’re speaking 17. the board of directors of
not only price-to-earnings
about two themes. One ■ Career: After obtaining a commerce degree Toronto’s Centre for Addiction and Mental Health ratios, but pre-cashflow yields
continues around the portfolio from the U of T’s Trinity College in 1982, Lewis Foundation, member of the cabinet, former board and other valuation measures.
approach to investing and how worked as an accountant and auditor, first with member of Operation Springboard (which is an Currently, we have a discipline,
important that is.The second Arthur Andersen & Co., and obtained his char- Ontario youth-employment program), board which Dan has developed
theme is global investing, and tered accountant designation. In the mid-1980s, member for Ontario Power Generation Inc., past over time, called the three
(we’re) highlighting the fact he enrolled in Harvard’s prestigious business member of boards of the VISA Canada discipline scoring process.
that we do have global school. After obtaining his MBA, he joined Association and Moneris Solutions Inc. It’s a combination of funda-
solutions for our clients. RBC Capital Markets and assisted with mergers ■ Passions: History, reading, religion, politics. mental research, quantitative
The Canadian market is very research and technical research.
concentrated by sector, so 76 equity investment or global of the G7 stock markets for non-Canadian equities.” It scores all the stocks in all
per cent of the Canadian stock equity investment and get over the last five years. So 15. What do you look the markets around the
market is energy, materials and exposure to leading companies one of the messages for for when investing in a world, and that’s available to
financial services.What we’ve in sectors like consumer advisers and clients, company – whichever side our portfolio managers,
been advising people is, simply stocks, information technology, simply from a prudence of the border it’s on? including myself.
from a risk-diversification industrials, health care. Canada point of view, is it’s a “I can’t speak for all the
perspective, you can add U.S. has been the best performing good time to be looking portfolio managers. Dan See SCREEN Page 12
February 9, 2007 Page 11
For real estate developers or investors,
JayCap Financial delivers
Quick and flexible
n Alberta’s incandescent real
estate climate, time is of the
essence. Patience may be a
virtue, but decisive action is more to
the point when land acquisition and
project development opportunities
are on the line.
Developers and builders realize
they can’t afford to dawdle when it’s
time to get their residential or com-
mercial construction projects off the
drawing board and on to the market.
When an important deal is in
the fire and bridge financing is
required, traditional lenders can’t
always respond in a timely and From left, Andrew Melton (Director), Ron Fredrickson (Vice-President, Commercial Mortgage Lending),
flexible manner. JayCap Financial Jeff Lastiwka (CEO) of JayCap Financial and Graeme T.G. Young (chairman),
of Edmonton, a dynamic mortgage
of Avison Young Commercial Real Estate (Alberta).
investment banking company,
operates on a different model. proficiency and integrity within the something to offer and Avison Canadian contacts is an immense
Extremely light on its feet, JayCap investment community. That’s the Young’s long-term strategy included asset, as are his years of
is responsive, responsible and primary reason he has attracted the a desire to get involved in the experience leading and managing
FAST, working quickly to provide attention of some of the most mortgage lending business. It just entrepreneurial companies across a
short-term financing for all manner respected names in the field. made sense for us to get together – range of industries. His background
of construction jobs, including One such name is Avison Young, a really good fit.” includes process refinement,
multi-unit residential properties, an acknowledged leader in Alberta’s As a third-party real estate organizational development,
commercial condominiums, robust commercial real estate service provider of long standing, strategic planning and business
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“The key in our industry is to act the JayCap business plan. They at JayCap. Melton has personally mortgages, tailored to suit the
quickly,” says JayCap president Jeff were so impressed they clasped stepped forward to assist Lastiwka needs of your unique project.
Lastiwka, MBA, CMA. “We’re here hands with JayCap, eventually in the important job of raising Meanwhile, the company’s
to help a builder get his project becoming full partners. capital. It’s a responsibility Melton efficient review process ensures
going, instead of making him wait “We saw some great synergies,” takes very seriously indeed. speed in delivery.
for months while other lenders come explains Andrew Melton, a founding “I think that’s an important point,” On behalf of investors, JayCap
through with appropriate financing.” partner of Avison Young in Alberta. Melton adds. “Our borrowers are operates a mortgage investment
That’s right, months. It can “Our wealth of real estate knowl- going to be well-served and well corporation known as JayFund Inc.
take an inordinate amount of time edge, operating at the highest levels looked after. And our investors, the Those who purchase shares can
for the wheels to turn. But if an all across the province, has turned clients and friends who provide the expect above average returns, with
applicant provides JayCap Financial out to be a great resource for equity capital, are also going to be quarterly income distribution and
with sufficient information to JayCap.” well-protected.” blended rates of return based on
properly conduct its due diligence, Graeme Young says: “Speaking As a youngster, Lastiwka spent interest earned from the mortgage
a short-term loan can be speedily on behalf of the partners of Avison most of his time at the rink, crafting pool.
approved – even within a week, in Young, we are fully committed to the an impressive career as a goal- To learn more, please contact
some cases. success of JayCap through both tender in major junior, university and JayCap and JayFund directly:
With more than 15 years partner capital and the available professional hockey. He even spent For Jeffrey Lastiwka, call
experience in the finance industry, resources we have to offer.” some time in the Calgary Flames (780) 641.0555 or email
and 10 years of direct experience Together, the associates are organization during the early 1980s. firstname.lastname@example.org.
in the management of private bringing their expertise to bear on But after he hung up his skates, he For Andrew Melton, call
mortgage banking and investment an under-serviced niche market, a got serious about his education, (403) 232.4304 or email
firms, Lastiwka has built a strong market with enormous potential. earning his Certified Management email@example.com.
company, committed to the creation As Melton puts it, this alliance works Accounting designation as well as For Ron Fredrickson, call
of wealth and prosperity for on a number of levels. an MBA from the University of (780) 641.0555 or
shareholders and investors alike. For his part, Lastiwka is thrilled Alberta. email rfredrickson@
He enjoys a reputation for by the arrangement: “I knew I had Lastiwka's extensive network of jaycapfinancial.com.
■ Jeffrey Lastiwka (780) 641.0555 ■ Andrew Melton (403) 232.43404 ■ Ron Fredrickson (780) 641.0555
Page 12 February 9, 2007
SCREEN from Page 10
Focus on clients drives business approach
“What it really helps (do) is you’re comfortable with. excellence to clients, the sec-
to screen out stocks below a RBC ASSET MANAGEMENT The natural conclusion from ond is teamwork, the third is
certain level that tend not to that would be: Look for personal accountability for
perform over time. It doesn’t ■ Brass: George Lewis, chairman and CEO; Brenda Vince, opportunities to diversify high performance, and
tell us what to buy, but it tells president; Dan Chornous, chief investment officer. outside Canada.” the fourth is diversity for
■ Profile: RBC Asset Management (RBCAM) Inc. is a wholly
us what not to buy.We found 18. What do you want your growth and innovation.That’s
owned private subsidiary of Royal Bank of Canada. RBC Asset
over time that avoiding mis- legacy to be with RBC? a particular goal and value, not
Management Inc. provides a broad range of investment services
takes is a key to performance. to investors through mutual funds, pooled funds and portfolios “A legacy of commitment to only particularly of Gord
Yes, it’s important to have managed by third parties. our clients. Of high perform- Nixon but also of myself.
good-performing stocks in the ■ Stats: RBCAM manages more than $300 billion worth of client ance and excitement. Of set- The fifth one is very central
portfolio, but the way to really assets. The firm distributes its investment products through 1,500 ting goals that are worthy of to a wealth-management
add value is to avoid the real in-branch and mobile financial planners and another 7,500 the people and worthy of business, which is trust through
bleak negative experiences.” licensed mutual fund sellers. the organization . . . RBC is integrity in everything we do.
16. What types of stocks do ■ Website: www.rbcam.com one of the most diversified If my legacy could be that
you think will be perform- ■ HQ: Royal Trust Tower, P.O. Box 7500, Toronto, M5W 1P9 financial-services companies, people look at my career
ing well in the next few ■ Phone: 1-800-769-2599 certainly based in Canada.We and say that I demonstrated
years in Canada? have many cultures.What those values, that would be
“Our message is primarily over-weighting in equities. the peak of the bubble back in we’ve found over the years – great.”
around one of diversification Our typical recommendation 1999-2000, trading at 35 and this really speaks to 19. If you couldn’t work
and investment in a value- for a balanced portfolio would times. Given our constructive me because I’ve had the for RBC anymore, what
added portfolio approach. So be 55 per cent equities and 45 view of the economy and opportunity to work in would you do instead?
we don’t provide research per cent bonds and cash. Right inflation and interest rates different parts of RBC – is the “I think it would be difficult
news on individual stocks, but now, we’re at 62.5 per cent and corporate earnings, we five common values are there, for me to contemplate that.
RBC’s Capital Markets does. equities, so we remain quite still think there’s significant and I’ve seen this in all parts of
Our overall view of the capital constructive on the markets. potential driven not only by RBC. One is commitment to See SERVICE Page 17
markets is a positive one. Dan It’s basically driven by a view equity expansion, but also by
Chornous, for example, chairs that the central banks have expansion in the price-to-
the RBC investment strategy been successful around the earnings multiple.”
committee, which is a global world in engineering what 17. What’s your advice to
committee of people in the we would call a soft landing – investors this RRSP season,
wealth management businesses in other words, containing when they’re considering
from around the world for inflation but not putting the what to put in their
RBC. He sets our outlook for economy into a recession. So portfolio?
interest rates, inflation, equity we look for low and moderate “No. 1, speak with (your)
markets. For the last three levels of inflation, and low and adviser, because every one
years, they’ve been able to moderate levels of interest situation is unique. Examine
add considerable value to not rates, and continued growth in your existing portfolio. (You)
only the asset-mix decision corporate earnings.When we may find that (your) agreed-
between equities and bonds, look at the valuations of the upon asset mix has changed
but also the decision as to markets around the world, for because of market moves. So
what geographies or what example, the U.S. market is rebalancing the portfolio
sectors to be invested in.Their only trading at 16.5 times would be the No. 1 message,
view, which is our view, means earnings right now. It was, at back to an asset mix that
February 9, 2007 Page 13
Invest in Prime Land Page 14 February 9, 2007
in Airdrie City Limits
See Page 4
★ 1: AURELIAN RESOURCES ★ 2: TORR CANADA INC. ★ 3: SOLEX RESOURCES
Tardif still bullish on energy, gold sectors
(Business Edge writer Sasha U.S. so I think that base-metal gone up a lot. Originally, it ■ Snapshot: Formerly Earth
Konotopetz regularly profiles the PRO’S 3 STARS stocks are a little more risky was an exploration company. Canada Corp.,Torr Canada
top stock picks of some of this year. I’d say that gold and Now it’s a company that has a develops technology and
Canada’s most accomplished (sectors). Short term, I’m energy are the best sectors deposit which is probably the equipment for the extraction
investment pros.) not necessarily buying more and that base-metal stocks are largest (gold) deposit discov- of hydrocarbons from upstream
(energy stocks) but I’m watch- pro b a bly riskier, even though ered in more than a decade – oil- and gas-produced water.
FEATURED PRO: Jean- ing it very closely because I they are still cheap.” maybe two decades. So what ■ CEO: Alain Ferland.
Francois Tardif is a portfolio know at some point we are could happen in 2007 is that ■ Head Office: Montreal.
manager with Sprott Asset going to have some great buys. FIRST STAR this company is probably ■ Vital Stats: Revenue
Management (www. sprott. “We are also fairly bullish on ■ Aurelian Resources Inc. going to be taken over by (last 12 mos), $3.2 million;
ca). He is the lead manager for gold, as usual, but this year (TSXV:ARU) some big companies such as 5-Yr Revenue Growth:
the Sprott Opportunities could be particularly interest- ■ Recent Price: $29. Newmont (Mining), Barrick 102.5 per cent: Earnings,
Hedge Fund. ing. Asian currencies could be ■ 52-Week Range: (Gold) and Goldcorp because (last 12 mos), $5.4 million;
Fund Form: The Sprott moving up substantially in $0.61-$43. this is the best (company) that Market Cap, $35.5 million;
Opportunities 2007. If that hap- ■ Snapshot: Aurelian those companies have been Shares Outstanding, 46.2
Hedge Fund has a pens, gold bullion Resources is a junior explorer able to get their hands on in a million.
one-year return of and gold stocks of precious and base metals in long, long time. I think that ■ Tardif ’s V i ew : “When
14.4 per cent as could do really well, southeastern Ecuador.The they will increase their you produce oil, many wells
compared to the so I’m spending company’s largest project is the resources – they are still produce a lot of water and
group average of some time looking Condor gold project, which drilling that deposit – so I there are still some particles
10.7 per cent at gold ideas. Base- controls more than 95,000 think that the stock will end of oil in the water. (Torr’s)
(through Dec. 31, metal stocks have hectares of land in 38 mining the year 2007 at between $45 technology is much better at
2006).The fund has done fantastically concessions. and $75 on a takeover.There is taking the particles of oil and
an annualized return well in 2006. ■ CEO: Patrick Anderson. always political risk because other bad stuff out of the water
of 33.6 per cent “I don’t think ■ Head Office: Toronto. the company is in Ecuador.” and the proof of that is that
since its inception Jean-Francois Tardif that they will ■ Vital Stats: R evenue (last ■ Risk Rating: High. they received 20-odd contracts
in April of 2004. necessarily do that 12 mos), NA; Earnings/Loss ■ Web Watch: last year in Kuwait. If it’s truly
Management Expense well in 2007.There are no (last 12 mos), $4.3 million Loss; www.aurelian.ca better technology, then once
Ratio: 10.2 per cent (plus guarantees in the stock market. Market Cap, $898.2; Shares you’ve got your first major
performance fees). You just try to weigh different Outstanding, 31 million. SECOND STAR contract it should be followed
Tardif ’s Strategy: “Energy potential scenarios and try to ■ Tardif ’s View: “(Aurelian ■ Torr Canada Inc. by more major contracts and
has been very weak for almost put percentage probabilities on Resources) made a major (TSX:TOR) eventually the stock should go
a year. Energy is one of our them and invest accordingly. discovery in 2006, so if you ■ Recent Price: $0.77. up a lot.
favourite sectors – it is one The bottom line is that we look at the chart in 2006 ■ 52-Week Range:
of my favourite long-term could have a recession in the you’ll see that the stock has $0.44-$2.07. See 3 STARS Page 17
YOU ARE INVITED . . . TO CUT TAXES!
Opportunity to Cut Taxes!
Please join us for our flow through investment presentation on:
Thursday, February 22, 2007
Sutton Place Hotel, 10235-101 Street, Edmonton
Lunch seminar 12:00 pm - The Vintage Room
Evening seminar 7:00pm - The Angus Shaw Room
RSVP to Kathy Nordin at (780) 408-1507
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or at firstname.lastname@example.org Hosted by: Ken Nilson, CIM, FCSI Featured Speaker: Mal Spooner
Funded in whole or in part by Mavrix Fund Management Inc. Senior Investment Advisor President, CEO & Portfolio
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The information contained in this communication shall not constitute an offer to buy or sell any of the
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February 9, 2007 Page 15
Prestigious Properties makes
real estate investment a snap
flow while you
investor is seeking
the fiscal equivalent
of the Holy Grail: a fully
secured, no-risk deal with
guaranteed and robust
rates of return.
Unfortunately, the Holy
Grail remains elusive. And
experienced buyers and
sellers realize it’s a rare
investment that doesn’t
entail at least a minor
element of risk. But that’s
the key to wise investment:
You’ve got to tap into the
highest possible returns
while keeping risk as far out Thomas Beyer, Douglas Thiessen and team members take away the hassles usually associated with pro p e rty management.
of the picture as possible. investment community is appreciate. combine positive cash flow These assets enjoy tax-
At Prestigious able to offer absolutely When a purchase syndi- with equity growth. Apart- deferred status until such
Properties, President iron-clad guarantees, cate is formed, such prop- ment or townhouse com- time as they are sold,”
Thomas Beyer and Chief Prestigious Properties erties will be acquired, plexes full of renters tend to Beyer hastens to add.
Operating Officer Doug CAN enable you to share skillfully managed, appro- match this profile beautiful- In short, it’s the perfect
Thiessen have shown that in the ownership of a priately renovated and ly. Because, as Beyer way for the man or woman
the syndicated purchase of revenue-producing apart- eventually re-financed points out, the more rental in the street to take advan-
carefully selected rental ment building that’s as after a lapse of time rang- units in the building, the tage of Western Canada’s
properties can bring close to bulletproof as it’s ing from nine to 24 greater the cash flow – booming real estate market.
investors reliable quarterly possible to be,” he adds. months. By that time, rents even after taking care of Beyer believes mature
cash flow and significant Much of the beauty of will have increased, with a upfront expenses such as investors may be kidding
equity appreciation, with the plan lies in its simplici- commensurate rise in the taxes, mortgage payments themselves if they believe
moderate risk. ty. Beyer urges you to value of the building in and rental management they can retire off a stock-
Beyer and Thiessen become a landlord while question. fees. market based investment,
have developed a highly leaving all the hassles to Under the terms of a As an example, the pres- such as a mutual fund.
successful formula that him and his team. His pre-arranged exit strategy, ident cites the company’s They’d be wiser to put
has made money for hun- program works this way: the syndicate will eventual- most recent investment their money into a safe,
dreds of their associates, Investors with a minimum ly sell the asset for as opportunity. It’s a 104-unit, inflation-proof REAL estate
most of them “ordinary” of $25,000 come aboard much as 30 to 90 per cent townhouse-style complex investment that makes
investors who have never as partners in a syndicate more than the original in Wetaskiwin, not far money as you sit back and
regretted their decision to to purchase an under- purchase price. southeast of Alberta’s watch its value appreciate.
enter into a syndicated managed, under-valued “There will always be capital city. Prestigious Beyer has learned the
purchase agreement. property in a well-regarded demand for residential Properties is currently pro- real estate business from
“Investors generally want area of a promising city tenants in dynamic provin- jecting combined cash flow the ground up. An award-
three things: Zero risk, such as Edmonton, cial economies such as (generally distributed on a winning Christian busi-
regular income on a Powell River, B.C. or B.C., Alberta and Sask- quarterly basis) and equity nessman with a glowing
monthly basis and a 100- certain medium-sized atchewan. Time and again, growth of as much as 15 to track record, he urges you
per-cent guaranteed towns in Saskatchewan, we have proven the rental 20 per cent a year on this to get smart and go with a
chance to watch their equi- B.C. or Alberta. market is a good growth complex. Beyer believes winner.
ty grow at a substantial Beyer likes to refer to his area, whether the econo- the value of this residential That’s Prestigious
rate,” says Beyer, an MBA ideal target properties as my is strong or soft,” says property could easily dou- Properties. It may not be
from the University of Class C buildings situated Bayer. ble within four to five years. the Holy Grail, but it’s as
Alberta as well as a Gold in Class B urban neigh- Prestigious Properties “And don’t forget, there close as most investors
member of the Alberta bourhoods. These are expends enormous effort on are numerous tax advan- are likely to come.
Real Estate Investment choice if underrated due diligence, carefully and tages to our program, Check out the Prestig-
Network. districts, where property methodically identifying including flow-through of ious Properties website:
“While nobody in the values seem destined to potential assets able to expenses via our LP. www.prestprop.com.
■ Website: www.prestprop.com ■ Phone: 403.678.3330 ■ Email: email@example.com
Page 16 February 9, 2007
Financial virtuoso teaches investment savvy
$100,000 or $1 million.” YWCA in Banff,Alta. Her new and resources, because that
Wants kids to While schools are emphasiz- job allows her to spend two enriches the life of someone
ing good grades for the purpose days a week promoting her else and keeps that whole cycle
understand how of attaining post-secondary book and newsletter. spinning. I’ll be rich by 30
education, Scorgie, who paid “The whole concept of Rich because I’m doing all of those
to spend, save for most of her $45,000 tuition By Thirty is that you want to be things.”
tab with savings, wishes schools rich by 30 – you Scorgie’s book is
By Sasha Konotopetz emphasized the money skills want to be rich by becoming part i c u l a r-
Business Edge that would enable students to any age – but the rea- ly re l evant as the
afford tuition fees. son you want to do aging population
hen Lesley “Parents aren’t talking about that is freedom. prepares for a mass-
the virtues of
cy,” the one most emphasized is Robin Kuniski photo
Lesley Scorgie’s wealth of
it (personal finance), teachers
aren’t talking about it. My peers
have no idea unless somebody
shows them or talks about it,”
she says. “Money shouldn’t be
is the freedom to
choose what you
want to do with your
re t i rement exodus,
leaving a void in the
“We’ve got some
big shoes to fill
The financial virtuoso won something that’s hidden – it “A lot of dreams (left from the Baby
her freedom the hard way. knowledge is a valuable tool. should be talked about. h ave price-tags Boomer generation).
Faced with a reading something, you are going to “Sixteen-year-olds have attached to them. There are a lot of
disability and financial hardship have to figure out a way to raise more disposable income than How are you going to go to gaps in our society, but these are
as a child, Scorgie didn’t just money for it.’ So I did.” the average parental unit in university without money?” also opportunities.”
h u rdle these hurdles – she Scorgie, who attended grade their homes. It’s going to cell- Although Scorgie is still How does one become as
pole-vaulted them. school in Edmonton and phones and pizza and movies. chasing the million-dollar opportunistic with their capital
By age 10, Scorgie had gone Calgary, parlayed a new-found And why? Because these kids benchmark, she aspires to be as Scorgie?
from being a challenged reader knack for reading into a pleas- have everything paid for them.” rich by the definition described “The No. 1 recommendation
to challenging herself with u re for reading stories with Although she says she hasn’t in her book. “Whether I have that I can make to any young
financial books and articles. charts and tables instead of pic- had time to approach school $1 million or whether I have $5 person is start now,” she says.
Now 23, she has released her tures. “I went from not reading boards about implementing the million or $100,000, being rich “The longer you wait, the more
own personal-finance book for anything to reading 500-page teachings from her newsletter is having – and I stress this in you cheat yourself out of time
people under 30. novels and enjoying them and into school curriculum, Scorgie the book – three components and time allows for compound-
Scorgie became fixated by reading financial columns. I says her wealth of knowledge of wealth,” she says. ed interest, which is free to any-
finances at an age when most liked articles because they were has been in demand. “The first and foremost is body that invests their money.
kids haven’t even heard of a free and they were short.” “Some schools really warmed being able to spend your “If you invested $35 a month
bank account, in hope of find- Scorgie, who has read “pretty up to the idea, because it is a money wisely and the second starting at the age of 16 and
ing a solution to her family’s much every personal-finance regular publication and it’s component is being able to save i n c reased it as your income
financial instability. book available,” didn’t take long designed like curriculum. and invest for your future. increases, you could probably
And while she isn’t banking to realize her financial goal was Every article in the newsletter “The third component is stop investing your money at 45
on her book, R i ch By Thirty – A to turn her spending money has re l evant (information), being able to give back to the years old and have a million
Young Adult’s Guide to Financial into saving money. whether it’s how to save on a community through your time dollars.”
S u c c e s s,to make her just that, she It was a fateful viewing of a cellphone bill or how to have a
was touted as a millionaire by Canada Savings Bond commer- stock-market portfolio.
age 25 on Oprah Winfrey’s TV cial that led Scorgie to make “I’d love to see it in the RETIRE TO MEXICO: Free information session
show when she was only 17. her first investment. school system. I think that it’s a ■ A Chartered Accountant’s View
Today, the Calgarian is dedi- “I saved $100 and bought my really va l u a ble tool. I don’t on Snowbird vs Non-Residency
cated to offering advice for her first Canada Savings Bond know if I am going to be able ■ Retirement Lifestyle Trends –
generation and future genera- because, for a 10-year-old, that to break those barriers, but I’m Cost of living, etc.
tions as to why they should put was easy to understand.You buy certainly going to try.” ■ Issues Related to Personal
their collection of coinage into a bond now and seven years Scorgie recently left a job at a Risk & Health Care Insurance
something more secure than a later your $100 bond is worth Calgary brokerage firm where
TUES. FEB. 27th, 2007 – 6:30 p.m.
piggy bank – and how they can $130, and you didn’t have to do she did equity research, work-
Carriage House Inn, Calgary - Limited Seating
get a firm grip on their loose anything for it,” she says. ing 80 hours a week. The
WED. APRIL 4th, 2007 – 6:30 p.m.
change. “It’s simple realizations that former YWCA volunteer has
Scorgie, a 2005 University of can sometimes be wonderful. taken a part-time position as a Greenwood Inn, Edmonton - Limited Seating
Alberta marketing and finance Imagine if you did that with director of marketing at the • 403-366-0786 • www.canadiansretiringabroad.ca
graduate, p rovides practical
answers to issues she says aren’t
being taught in schools.
“My inspiration (for Rich By
Thirty) came from the fact that
there is nothing in our school
system for teaching young
people (about personal
finance),” says Scorgie, who is
also the editor in chief of the
Rich by Thirty newsletter.
“If there’s anything it’s, you
know, a one-period class in
Focused on building what
she called her “empire” as a
child, Scorgie’s initial motiva-
tion came from her desire to
earn spending money she
wouldn’t otherwise get.
“We didn’t have any money
when I was growing up. My
parents were back in school and
we were living off of, like,
$24,000 per year, which is just
above the poverty line.And that
was for a family of five.
“My parents said:‘If you need
February 9, 2007 Page 17
SERVICE from Page 12
Public policy and politics a particular interest
“But I suppose that I would charitable organizations, have a career in business, but enterprise system can be but they’re ultimately
enjoy reading for a while and, not-for-profit groups or public (I’m) also interested in public mutually reinforcing forces. (messages) of tolerance and
at some different points in service.That would probably policy and politics. (I’m) very Sometimes, they’re perceived diversity, that I think are
time, I’d probably entertain the be something that I would interested in religion and work to be in conflict.The individ- (among) the strengths of
thought of writing a few turn my mind to at that point with our Anglican Bishop of ual human soul, in most Canada.That might be the
books or getting into another in time.” Toronto (Right Reverend cases, is really central to our theme around what I would
aspect of service. I know many 20. What would you Colin Johnson) to chair a belief in democracy and essen- be writing about.”
of my colleagues from Harvard write about if you wrote group that works on his tial to our free-market system. (Monte Stewart can be reached
Business School and others books? behalf.What strikes me is Those are not new messages, at firstname.lastname@example.org)
have gone on to careers with “I’ve been very fortunate to how democracy and the free-
3 STARS from Page 14
Firm focused on uranium play
“You’re protected on the ■ Web Watch: Disclosure: Tardif owns
downside because they have www.solexresources.com shares in the Sprott Oppor-
close to 50-per-cent per share tunities Hedge Fund in which
cash.” Tardif ’s Edge Record the featured stocks are held.
■ Risk Rating: High. (last 12 mos): +4.9 per cent. (This feature is provided for
■ Web Watch: Best Pick: Geniver Income informational purposes. Investors
www.torrcanada.com Fund (TSX:GVN.UN) +40.6 are advised to do their own
THIRD STAR per cent. Worst Pick: Strong- research or consult a qualified
■ Solex Resources Corp. co Income Fund (TSX: investment professional before
(TSXV:SOX) SQP.UN) -78.9 per cent. making investment decisions.)
■ Recent Price: $1.35.
■ 52-Week Range:
■ Snapshot: Solex Resources
specializes in the acquisition
and development of uranium
and base-metals properties in
Peru.The company targets
previously discovered but
largely unexplored high-grade
uranium and base-metals
properties for acquisition.
■ CEO: Sebastian Reidl.
■ Head Office: Vancouver.
■ Vital Stats: Revenue (last
12 mos), NA; Market Cap,
$51.9 million; Shares
Outstanding, 41.5 million.
■ Tardif ’s View: “(Solex
Resources) has a very low
market cap and it has a few
uranium properties in South
America.They actually have
one base-metals property, but I
am very excited about this
company’s uranium properties.
We believe that there are
probably 50 million pounds of
uranium (on Solex-owned
properties). Over the next
few weeks, the next few
months and throughout the
year we are going to be
getting more and more
results to prove that they have
50 million (pounds) or more.”
■ Risk Rating: High.
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Page 18 February 9, 2007
don’t grow it alone
See Page 12
Partnerships required to develop oilsands
f we want to proceed for Sustainable Energy,
with our announced Environmental concerns prompt technological shift Environment and Economy
plans, we have to (ISEEE) at the Unive rsity of
change the way we In the U.S., the George W. taxes on any oilsands products dramatic improvements in oil- Calgary has both the expertise
are operating.” Bush administration has coming into his state, as a sands emissions. and technical research
This recent comment from expressed rising concerns result of heavy pressure from But there is still important capability to help deliver such a
an energy industry colleague is about energy security. During local environmental groups. work to be done in the devel- partnership.
being expressed more and a recent trip to Washington, For A l b e rta to address these opment of this technology to ISEEE has the vision and the
more frequently, even by folks D.C., one of the Senate staffers problems, we need fundamental make it commercial. experience in bringing parties
such as former said to me: “Alberta technology change such as No one company or govern- together and creating a new
Alberta premier GUEST is now the most “clean coal” or “bitumen coke” ment can do it on its own.We sustainable fossil-fuels econo-
How does Alberta OPINION strategic energy
source for the U.S.
(coke is a byproduct of oilsands
production) processes, c o m-
need all the best brains work-
ing together.We need a new
my for Alberta.The institute
has the close links to industry
proceed with the in the world, given bined with underground seq- grand partnership between and government, yet the
huge expansion of our problems in the uestration in geological re s e r- industry, governments and necessary independence to
oilsands and thermal Middle East and voirs of remaining emissions. the universities to speed the help build public credibility.
power given the with Venezuela. How would this work? We technical, the scientific and the This is a huge challenge for
growing public Five million oilsands would take coal or oilsands policy innovation needed. our province and the future of
expectations for barrels a day will coke, gasify it as a fuel, capture We need an outreach pro- our energy industries.
environmental greatly strengthen sulphur or other pollutants, gram to the public to gain their Let us all work together and
stewardship and American foreign and permanently store the u n d e rstanding and support.We get on with the job.
emissions cuts? This policy.” remaining carbon dioxide need new market mechanisms (Robert (Bob) Page is ISEEE’s
is clearly an issue The Canadian underground. to complement government new TransAlta Professor of
that has to be government has For a new power plant with regulations.We need the Environmental Management and
addressed. Bob Page promised the such technology, the combus- political will and leadership to Sustainability. He was formerly
For decades, the For Business Edge Americans access to tion would be virtually emis- bring the parties together. vice-president of sustainable
two oilsands plants these reserves, sions-free. It would also mean The fast-growing Institute development at TransAlta Corp.)
owned by Suncor and which adds to the pressure for
Syncrude operated in splendid environmental-management
Invest As A
isolation north of the Alberta solutions.
mainstream.They survived With the increased oil
with technical adaptations, prices, the world has come
Real Estate Developer!
production interruptions and knocking to northern Alberta.
patient investors because there The two original oilsands
was a firm belief that technical plants will now be joined by
innovation would drive down
costs and improve efficiency.
another 20 or 25 facilities
under construction or planned. Land Within Calgary City Limits
With perseverance and Most of the major producers
ingenuity, these companies saw are involved directly or
their vision converted into indirectly, as well as the state-
• Exceptional rate of return, call for details
commercial reality. owned “national” oil com-
One of the key factors in panies from countries such as • Investments starting at $9,500
that achievement was the India and China, which are
• Huge upside potential in Calgary’s booming economy
pooling of the best brain seeking supplies for their
power in the province. A domestic consumption. • RRSP eligible
large government-industry- Globally, the Alberta oilsands
university partnership was represent the hottest oil boom
created called AOSTRA
(Alberta Oil Sands Technology
today.The basic problems for
the Fort McMurray area are
Commercial Complex, Calgary
and Research Authority), complex and interconnected.
which tackled the technology Oilsands production is
and other issues. much more greenhouse gas-
This consortium drove the intensive than convention oil
development of the technology production, and also creates
breakthroughs, which in turn emissions of the acid rain-
drove down the costs per bar- causing sulphur dioxide.
rel.This converted the oilsands There are also serious issues
into the mainstream of the oil about the availability of
and gas business, and assured its enough water and about the
commercial future and its water quality of adjacent rive rs .
attractiveness to investors. The oilsands plants will disturb
We need a similar grand a huge area of northern Alberta
partnership to make the for wildlife and First Nations.
oilsands and coal reserves The urban infrastructure is
renewable and sustainable quite inadequate for the huge • 2.85 acre; commercial multiphase office complex
resources, consistent with influx of workers and their
public expectations on safe- families. 60,000 sq. ft. along Deerfoot Tr. South
guarding the environment. While the issues are many,
In the last five years, Alberta’s the public concerns about the To attend an information seminar or receive an information package
energy reserves have increased environment top the list and call (403) 291-2456 or toll free 1-866-379-4274
in global importance, due to are attracting international
the huge increase in world attention. www.cpicrown.com
Southbend Crown Centre
oil prices and declining Gov. Arnold Schwarzenegger
exploration and production of California recently
levels in North America. announced significant new
February 9, 2007 Page 19
Mining industry savours nationwide boom
Producers press has been a difficult period,” he
says.“We’ve seen major declines
have been strong and others
have not. The unprecedented
wo rth of mining investment in
Canada, says A n d rews. He
climbed to US$5.5 billion from
under US$2 billion in 1999-
of prices. But over the last two part about this one is: Every expects that figure to increase by 2000.
for streamlined or three years, certainly the last commodity is up.” $150-$200 million more this
two, we’ve seen a major recov- In 2006, there was $1.2 billion year. Globally, investment has See MINING Page 20
review process ery in markets and prices, driv-
en by Chinese demand. It’s had
By Monte Stewart a huge factor on the market and If you had invested with us in Your return would have been
Business Edge we’re seeing some of the high-
est prices we’ve ever seen for Spring 2004 112%
.C. is leading the country some commodities.”
B in new mining projects as
the entire Canadian industry
But Peeling says the 25 new
mines forecast for B.C. will be
Fall 2004 268%
enjoys a boom based on high slow to open because the feder- 2005 106%
commodity prices, say provin- al assessment process, which is
cial government officials, pro- largely environmental in scope, 2006 71%
ducers and explorers does not have the capacity to
After years of struggling to review so many projects.
keep its industry afloat, B.C. “So we’ve been pressing the Can your investments
now accounts for 25 of 52 federal gove rnment to deal deliver regular cash, grow
Canadian mine projects that are with this issue and put more
seeking development and envi- (financial) resources in place so tax free and outlive you?
ronmental approvals. we can get mining projects
This year, B.C. is expected to through the assessment phase Target Yield: 75% to sometimes over 100% in 4 to 6 years,
exceed the record of $265 mil- more quickly,” he says. Why Invest in Apartment Buildings? frequently much much higher (but not guaranteed). This is
lion worth of exploration Producers are also pushing a combination of cash-flow, mortgage paydown, value
e x p e n d i t u re s , set in 2006, Ottawa to integrate and har- improvements and equity growth, before taxes but after
● Positive, monthly cash flow
all management fees/share. Values shown above based on
which was a 20-per-cent monize its rev i ew pro c e s s e s ● Always a demand from renters building values sold, appraised and/or if sold today.
increase over 2005.The expen- with its provincial counterparts. ● Historically low vacancy rates Past results not a guarantee of future performance.
ditures covered 617 exploration However, environmentalists ● Huge house/condo price Investment sold via offering memorandum only. This is
projects. h ave countered that rev i ew not a solicitation of investments. Eligibility rules apply –
increases make renting the depending on province. Minimum investment $25,000.
The results were reve a l e d p rocesses should take longer RRSP Eligible. Well over $8,000,000 has been invested in
economic choice – a paradigm shift
prior to the recent Mineral because projects are increasing- various ventures already – proven track record – proven
in Western Canada
Exploration Roundup 2007 ly complex. results – fairly low risk. Over $40,000,000 of assets under
● Mortgage paydown / leverage management. We turn under-managed, under-valued
conference in Vancouver, which “We don’t need to lower our
attracted approximately 5,000 standards, but we just need to ● Substantial equity appreciation / apartment buildings into Prestigious Properties, for the
benefit of the tenants, the investors and the communities.
delegates from across the coun- make the system work more value improvements
try. efficiently,” says Peeling. “And,
Conference attendees say since this is a cyclical business, Why Invest with Prestigious Properties? www.prestprop.com
B.C. heads a national industry we want to hit the market at
that is riding a rare “super the right time.” ● Excellent return ➤ RRSP Eligible
cycle” of high commodity Still, Peeling and Tony ● Ethical stewardship by lead managers
prices spanning all mineral Andrews, executive director of ● Outstanding track record - references
types. the Toronto-based Prospectors ● Long-term hold with cash flow and
Tom Schroeter, the B.C. gov- and Developers Association of equity upside
ernment’s top geologist, says Canada (PDAC), are predicting ● Become a landlord without the hassles
p ro d u c e rs operating in the commodity prices will remain
● No inflated going-in values
province could complete $9.5 high for several more years.
billion worth of capital spend- “It’s quite unprecedented,
ing on 50 mine projects in the because as you know, this is a For more information, please contact us at 1-877-434-4345
province over the next four cyclical industry,” says Andrews
years. about the national boom. “In or email@example.com
“Those (figures) will change the past, when we’ve had or check our website at www.prestprop.com
as time goes along,” s ay s cycles, certain commodities
Schroeter. “But for now, (the
projected $9.5-billion invest-
ment) is just a ballpark figure
that indicates how robust we
Gordon Peeling, p re s i d e n t
and CEO of the Mining
Association of Canada (MAC),
which re p resents metal, d i a-
mond and oilsands producers,
says B.C. operators are “catch-
ing up” to the rest of the
Canadian industry after a
decade of declining investment.
“The actual growth in B.C. is
interesting to see – and quite
e x t r a o rd i n a ry,” says Peeling.
“But you have to understand
that, for about 10 years, British
Columbia was basically off-lim-
its for the mining industry
because of (provincial) govern-
ment policy as it supports the
industry and the mines.”
The rest of the Canadian
industry is also recovering, says
“The bulk of the last 10 years
Page 20 February 9, 2007
from Page 19 Pessimism growing as Canadians examine their future lifestyle
Business Edge survey from Mackenzie in their gloomy outlook. From believing you need $2.52 mil-
‘Grassroots’ More than one-third of
Canadians believe their current
People might be pessimistic
partly because they don’t
1994 to 2004, inflation jumped
22.2 per cent while individual
earnings increased only 14.7
lion, compared to women, who
said $1.99 million. Not surpris-
ingly, 85 per cent of Canadians
exploration lifestyle will be unaffordable in
10 years, says a survey.
Another 24 per cent predict-
expect significant salary
increases in the years ahead: 40
per cent of Canadians believe
per cent, underpinning con-
cerns for future buying power.
On average, Canadians define
do not consider themselves to
be financially wealthy.
Decima Research conducted
called key ed their lifestyle would remain
about the same, while only 32
their salary will either stay the
same, decrease or rise by 10 per
financially wealthy individuals
as those with $2.26 million in
telephone surveys for Mac-
kenzie between Oct. 26-30,
per cent think their lifestyle cent or less. total assets. Men have a higher 2006 with a sample of 1,000
to growth will be better, according to the Inflation may also play a role benchmark than women, Canadians aged 18 and over.
While B.C. is challenging
Ontario for bragging rights as
Canada’s most active mining
province, other regions are also
enjoying good times.
“Alberta hasn’t been a big
jurisdiction for mining per se,
unless you want to call the oil-
sands mining,” says Andrews.
“It’s the biggest mining opera-
tion in the world.”
Saskatchewan is also a strong
contender with potash, urani-
um and gold mining, he adds.
The province is also rich in
kimberlites, the mineral forms
that bear diamonds.
“They’re fortunate to have
some great geolog y,” says
Andrews, adding the demand
for potash and uranium is only
going to increase.
Nationally, continued invest-
ment in “grassroots,” or earli-
est-stage, exploration will be
the key to long-term growth,
As a result, PDAC is lobbying
O t t awa to extend a flow-
t h ro u g h - s h a re program that
grants tax breaks to investors
who buy shares in exploration
companies that are spending
dollars in Canada.
The three-year federal pro-
gram is due to expire in
B.C. government geologist
S c h ro eter says grassroots
spending should account for
20-24 per cent of total industry
expenditures, but has only been
at the 12- to 14-per-cent level
in the past two years.
A c t ivity is ramping up
now because companies have
modernized mineral-re s e rve
estimates on properties that
were discovered in the 1960s
and 1980s, but sat idle because
of low commodity prices and
As a result, he predicts this
year’s overall investment in
B.C. will be “much better”
than last year, when projects
were delayed because of labour
shortages, the slow return of
lab results, and a lack of avail-
able equipment that prompted
some pro d u c e rs to purc h a s e
their own drills.
MAC president Peeling says
it will be difficult for com-
panies to lure some Canadian
mine workers home because
they pay much lower personal
income taxes in other parts of
(Monte Stewart can be reached
February 9, 2007 Page 21
Businesses can beat big utility bills
at 51st Avenue Building Park
project a great
OK, so Kermit the Frog was
bang on. It’s not that
easy being green. But it just got a
whole lot cheaper, especially for
those industrial and corporate
clients planning to move their
operations into the 51st Avenue
Building Park in south Edmonton.
In a climate of rising energy
costs, those who’ve opted to
purchase warehouse or office
space in this ultra-modern and
super-versatile business complex
51st Avenue Building Park is being built on a prime southside office/warehouse location in Edmonton.
can kiss those annoying utility bills
goodbye. brings you the ultimate in climate to the Whitemud Freeway, Calgary workforce? Never fear. If you act
Occupants will enjoy the control, as well as a seven-year Trail and downtown. The Park will quickly, multiple units are still
utmost in climate-controlled performance warranty. All that’s consist of four separate concrete available to meet your specific
comfort when they move their required is minimal and occasional and steel structures – three requirements.
enterprise into these magnificent maintenance touch-ups on the buildings will be a combination Meanwhile, office units range
units, individually heated and geothermal heat pump. But don’t of warehouse and office space from 795 sq. ft. all the way up to
cooled by environmentally friendly let that worry you. Clarke equates while the fourth, which will front 2,556 sq. ft. Again, those in need
geothermal technology. the complexity of the job to on 51st Avenue, will feature of additional space are welcome
How does it work? Each unit changing the air-flow filter on offices only, with underground to purchase additional adjacent
is warmed and air-conditioned your residential furnace. parking available. units.
in turn, by means of an under- “We’re pleased to be bringing “Pretty hard to beat, when you Construction on this superb
ground water and ethanol-based such an environmentally sound think about it,” Clarke continues. complex is due to launch in early
circulation system that collects complex to the Edmonton “We’ll be situated in a high-traffic spring, although geothermal
warm or cool air from beneath the marketplace, no question,” Clarke location. As a matter of fact, it’s drilling has already started.
earth, then transports it back adds. “But there’s more to it than one of the last pieces of vacant Meanwhile, pre-sales have rapidly
above ground. Technically, there’s that. We sincerely believe this is land available anywhere on this kicked in. Needless to say, the
much more to the process, but a superior system. It’s efficient, street.” addition of such a quality project
those are the essential facts. cost-effective and comfortable.” In short, we’re talking about a to Edmonton’s extremely robust
“You can forget all about paying And talking of comfortable, the prime southside office/warehouse industrial market has already
your gas bill,” nods John Clarke, front two buildings are attached location that has already drawn generated plenty of interest.
construction manager for directly to the underground interest from physicians, lawyers, Guild Developments Inc.
Guild Developments Inc. We’re parkade, while buildings three insurance brokers, financial prides itself on the strength of
talking about a tremendous and four have elevators directly to planners and other potential its dedication to quality, its
economical advantage here. the underground parkade. end-users who know a terrific professional approach to sales
Based on conservative estimates, Meanwhile, triple-glazed site when they see it. and service and its commitment to
those who purchase space windows and an additional two Situated to take advantage of the highest ethical standards and
at The Park stand to save inches of acrylic stucco insulation 51st Avenue access, The Park best business practices.
thousands on annual heating built into exterior walls add to the utilizes steel and concrete To make a purchase enquiry
and air-conditioning costs. energy-efficiency of these state-of- construction and offers a pleasing about the 51st Avenue Building
“Each unit is individually the-art buildings, to be ready for variety of floor plans intended to Park, please get in touch with the
metered as well. That means occupancy by late fall of 2007. meet the needs of a broad variety company today. Either stop by the
you have complete control of the An ecological showplace, of occupants. office at 9841 41st Avenue in
temperature in your own space,” the 51st Avenue Building Park Warehouse units are equipped Edmonton or telephone
Clarke chips in. meets all the other criteria for with 200-ampere, 3-phase power 780.450.9778. Feel welcome to
Apart from straight dollars and an outstanding real estate capability and range in size from visit the Guild website at
cents, geothermal ventilation investment. Near the top of the 1,412 sq. ft. to a maximum of www.guilddevelopments.ca
means wall-to-wall comfort in an list is the location, on prime 2,800 sq. ft. Not enough room to or get in touch by emailing
office or warehouse space that property that offers ready access accommodate your expanding firstname.lastname@example.org.
■ 51st Avenue Building Park ■ Phone: 780.450.9778 ■ Website: www.guilddevelopments.ca ■ Email: email@example.com
Page 22 February 9, 2007
Saskatchewan sings siren song for ex-pats
rate impressions of our Weyburn checks in at a modest
Provincial province,” she states. “We have $105,000, below even Sask-
an attractive way of life and an atchewan’s average of $138,000.
government affordable lifestyle, compared to Like the provincial campaign,
Alberta.” Weyburn’s promotion includes
pitches jobs For the moment, the Alberta testimonials, including one
government is watching the from “self-proclaimed ambassa-
‘back home’ campaign with interest, but has dor” Heather van der Breggen.
made no response. She and husband Abraham
By Bill Armstrong “The new reality is that moved back to his hometown
Business Edge everybody across the country from Calgary five years ago.
is competing for people,” She traded her “go-go-go”
nviting Albertans to “Go observes Dorothy Schreiber, a career as an interior designer
where the jobs are” might spokeswoman for the province’s for the chance to slow down
seem counter-intuitive, Department of Employment, and enjoy simple pleasures such
but that’s exactly what the Immigration and Industry. as meals with her family.
Bill Armstrong, Business Edge
S a s k a t c h ew government is “Some are becoming very Working as an interior-
doing with a $200,000 market- ‘Self-proclaimed ambassador’ Heather van der Breggen. creative.” design consultant in a flooring
ing campaign that it launched manager position with Atco Besides Urzada, Lothian has The new reality also includes and home decor store in
in Alberta in mid-January. Stru c t u res in B. C. , but he also attracted an ex-pat couple initiatives by individual com- Wey burn, van der Bre g g e n
For years, Saskatchewan folks wanted to work in the oil and with two children back to munities in Saskatchewan observes the quickening pace in
watched their sons, daughters gas industry. Regina. She has expertise in oil searching for people to fill job the residential and commercial
and neighbours head west in A chance exchange of e- and gas accounting. Through vacancies. real estate markets.
search of opportunities. mails with Craig Lothian, the his contacts, Lothian was able to Last October, the Gre a t e r “We had two couples come
And while Saskatchewan president and CEO of Regina- generate several job offers for Saskatoon Chamber of Com- in a few days ago, each looking
boosters have long emphasized based Keystone Energy, led to a her husband. merce held a business-to-busi- to decorate brand-new homes,”
the province’s afford a bl e, relaxed job offer as assistant chief finan- The centrepiece of the “Go ness tradeshow in Calgary to she say s . “There’s also a
lifestyle, the outmigration con- cial officer at Keystone. where the jobs are” campaign is inform potential investors of plumber-electrician who came
tinued. Jobs, careers and big-city “The stars aligned,” says saskjobs.ca, a website listing opportunities in the city. from High River to work for a
life trumped Saskatchewan’s Urzada. “I wanted to be close everything from entry-level to And, just days before the contractor here. He’s now set-
more laid-back appeal. to my family, but I was also high-end jobs. It has become p rovince launched its cam- ting up his own business. We’re
But the westbound traffic interested in oil and gas. I knew the “go-to” site for job postings paign, a handful of Saskatoon also seeing a lot of commercial
pattern may be changing. For I wouldn’t have an opportunity in the province, with more than businesses attended the Calgary space renovated or remodelled,
the first time in years, Sask- to learn and develop my career 5,000 listings on any given day. Homebuilders show, to get the which reflects the growing
atchewan’s population numbers in Calgary in the same manner. “We sent letters to 35,000 word out to a more general optimism in the marketplace.”
began to inch up in 2006. “The lifestyle in moving back employers in Saskatchewa n audience. Will Saskatchewan’s cheeky
Now the provincial govern- has been an adjustment, but I when we launched the website, “Obviously, Alberta hasn’t appeal to “Go where the jobs
ment is getting the word out to like it.” (As part of its “build and and followed that with ads,” says fallen off a cliff, but people are” catch people’s attention in
thousands of Saskatchewan sell” strategy, Keystone recently Pat Atkinson, Saskatchewan’s need to know that for the last Canada’s hottest job market?
expatriates living in Alberta; sold its assets to two public minister of advanced education three years, Saskatchewan has Will those ex-pats decide that
their home province is experi- companies. Urzada is now and employment. “We’re being been creating a lot of jobs,” says Saskatchewan’s “rush minute” is
encing its own resource boom. CFO with a new exploration a bit cheeky by taking it into i
Kent Smith-W n d s o r, the more inviting than life in the
Labour shortages are not just an company, Villanova Energy Alberta, but if we can get it into chamber’s executive director. fast lane, with the prospect of
Alberta phenomenon. Corp.) our psyche in this province, In Wey bu rn, population ever-longer commutes and
The people profiled in the “Being in the oil industry in and also let ex-pats know to 10,000, the city and the region- large mortgages?
ads popping up in Alberta Regina presents a host of chal- check out saskjobs.ca, we’ll be al economic development The provincial government,
represent the campaign’s demo- lenges, including finding expe- in better shape.” authority teamed up to create an c o m munities and economic
graphic sweet spot. T h ey ’re rienced personnel,” Lothian Atkinson says the campaign eight-page brochure promoting development organizations
young, educated and hold chal- says. “Advertising in the indus- has created a huge amount of the area as a low-cost place to around the province are betting
lenging jobs. try papers brought zero media activity and discussion in work, do business and retire. there’s a receptive audience in
Eric Urzada, for example, is response, so we now look for Alberta, and her department is Prominently displayed on the Alberta to the call to “come
26. He grew up in Regina and former Saskatchewan residents receiving a steady stream of front page is a comparison of home.”
studied accounting at the who haven’t developed too- calls from people wanting to average housing prices in cities (Bill Armstrong can be reached at
University of Calgary’s school deep roots in Calgary, and offer know what’s going on in across Western Canada. firstname.lastname@example.org)
of business. them opportunities to be Saskatchewan.
He was working in Calgary, involved in a dynamic process “I think we’re cutting
and had been offered a sales with lots of moving pieces.” through the tired and inaccu-
Use Someone Else’s Money
Equipment Leasing is Convenient and Fast
• Steel Buildings
• Commercial Equipment
• Office Equipment
• Materials & Handling Equipment
• Agriculture Equipment
• Plus Much More
Offices in Alberta, Saskatchewan and Ontario
February 9, 2007 Page 23
Arctic watershed gold mine www.CalgaryITJobs.com
for ecological goods, services The name that say’s it all……
If you are looking for an IT Professional or you are an
IT Professional looking for your next opportunity,
contact us on: 403.444.3631
The Canadian Press land providing them. The attempt to squelch deve l o p-
report calculates that if those ment in the North, where jobs
An innovative report on the services are degraded by half, are both needed and eagerly
value of the Mackenzie Valley developed areas actually lose anticipated, but an attempt to
and Delta region has concluded worth. broaden the thinking behind
that the “ecological goods and “In 2005, the benefits of land-use planning. Calgaryitjobs is part of the Proxime Recruitment Solutions Ltd Group
services” provided by the vast $41.9 billion in GDP from nat- “How do we stewa rd it?
western Arctic watershed are ural capital commercialization How do we use it wisely?” he
worth 10 times the value of its have come at an ecological asks.
natural resources. d e p reciation cost of $67.3 Canadians enjoy some of the
“The study shows the impor- billion,” the report says. richest natural capital in the
tance and real socio-cultural- Innes says the report isn’t an world, said Innes.
economic value of conserving
natural capital, and balancing
sustainable development with
protecting intact ecosystems,”
says the report.
The report was prepared for
the development think-tank
the Pembina Institute and the
Canadian Boreal Initiative, a
group devoted to pre s e rving
the vast forest lands that stretch
across the northern reaches of
nearly every province and terri-
tory in the country. That forest
is considered by many to be
one of the last great untouched
ecosystems left on Earth.
It’s an attempt to measure
assets that traditional econom-
ics don’t, said Larry Innes, the
group’s executive director.
“Natural capital is the non-
market services that nature pro-
vides, like carbon storage and
water filtration, re c re a t i o n a l
opportunities,” he said. “Things
that have real societal value, but
don’t compute in our gross
Such services provided by the
M a c kenzie River watershed
a re worth an astronomical
$448 billion a year, the report
The market value of the
area’s resources such as oil, nat-
ural gas and minerals are worth
about $42 billion a year.
Canada’s entire gross domes-
tic product, measured tradition-
ally, is about $1.2 trillion.
At 1.7 million sq. km, the
Mackenzie region is one of the
largest watersheds in the world
and comparable to rivers such
as the Amazon.
To bolster its argument that
natural capital has value, the
re p o rt points to the New
Orleans area, where some of
the $80 billion in damages from
hurricane Katrina may not
have occurred if the bayous and
wetlands surrounding the city
hadn’t been drained.
The report analyses 17 differ-
ent “services” the ecosystem
provides. They include atmos-
pheric and climatic stabiliza-
tion, erosion contro l , waste
treatment, pollination, soil for-
mation, food production and
Those services are degraded
as energy and mining develop-
ment reduces the amount of
Page 24 February 9, 2007 Invest in B.C.
See Page 30
See Page 17
Builders cancel contracts at their peril
Courts rule that poor business
decisions are not ‘Acts of God’
anadian home- Association–Alberta acknowl-
builders who edge that they have heard
arbitrarily cancel complaints about cancellations.
contracts with their Some builders have relied
customers – citing clauses they on the cancellation clause in
believe let them off of the the purchase agreement or
hook when costs rise to construction agreement that
unexpectedly high levels – ANHWP recommends to its
may be flirting with legal peril. builders.
The clauses these In a 2006 article
builders rely on are BROCK published in
called “force WATCH ANHWP’s news-
majeure,” French letter From the
for “greater force.” Ground Up,
Commonly found Calgary lawyer
in construction David Tettensor
contracts, these cautioned builders
allow a party to about taking such
cancel a contract action without
when some consulting with a
File photo by Ken Kerr, Business Edge
unforeseen event lawyer.
beyond the party’s Force majeure Homebuilders must understand the legal ramifications of cancelling a contract with a buyer.
control prevents it clauses,Tettensor the pulp and paper company that the matter be retried, the ■ How broad should the
from fulfilling its Brock Ketcham explained, are responsible for honouring appeal court found that Atcor definition of the triggering
obligations. For Business Edge meant to relieve its end of a contract that it would have been obliged to events be?
Examples that parties involved in wanted to cancel. carry out its agreement if it ■ What impact must those
the contract might cite contractual obligations from St. Anne signed a contract, were commercially reasonable events have on the party who
include blockades, insurrec- having to carry out their end then told its two waste paper for the supplier to acquire a invokes the clause?
tion, hurricanes, the sudden of the bargain in the face of suppliers that declining mar- new supply of gas. ■ What effect should the
coming of a new ice age or events that are “unexpected, kets were forcing it to invoke The Court of Appeal of invoking of this clause have on
Earth being struck by an something beyond reasonable the force majeure clause. But Alberta pointed out that a the contractual obligation?
asteroid.These are seen as acts human foresight and skill.” the high court did not accept force majeure clause should
of God, and thus beyond the “Courts have been clear they the company’s arguments. address three questions: See BROCK Page 25
control of mortal home- are not to protect against poor “The project, conceived in
builders.To hold a builder to business decisions,” he added. ephemeral hopes and not the
such a contract would subject “Cancellation, except in harsh realities of the market-
him unfairly to certain ruin. the clearest of cases, carries place, resulted in a failure for
However, some builders are significant risk,” the lawyer which St. Anne and not
interpreting this to include wrote. “Courts are reluctant changes in the market . . . must
abrupt, unforeseen changes in to allow any party to escape be held accountable,” the
the business environment, such obligations in a contract, let Supreme Court decided.
as an increased cost of supplies alone the party with the In a more recent case, the
or a shortage of tradesmen. experience and control of Court of Appeal of Alberta
Faced with such challenges, the process and in the better ordered a new trial in 1996 in
they resort to cancelling position to understand the Atcor Ltd. vs Continental Energy
contracts and attempting to economic circumstances of the Marketing Ltd. after deciding
renegotiate them. industry.” that the real purpose of a force
When this happens, Tettensor’s comments were majeure clause is to deal with
consumers get cranky. guided by a landmark 1975 the effect of the event, not
Some sue. Supreme Court of Canada simply the occurrence.
Booming Alberta, which has judgment – Atlantic Stock Paper Continental, a marketer of
seen more than its share of Limited and Elliot Krever & natural gas, sued after pipeline
home construction, is no Associates (Maritimes) Ltd. vs St. disruptions drove supplier
stranger to the cancelled Anne-Nackawic Pulp and Paper Atcor to invoke its force
contract.Thirteen clients Company Limited – that held majeure clause. In ordering
of Reid-Built Homes, for
example, sued the Edmonton-
area homebuilder last fall for
Stunning Estate in Foothills / Calgary
cancelling their agreements Premier home set on 4.0 acres of landscaped and forested land. Two-story
and then raising the price of walkout features five bedrooms and 4 baths in 5,248 sq ft. Enjoy awesome
mountain views and one of the four fireplaces. Did I mention a theatre,
their homes. a games room, and a beautiful indoor swimming pool in the lower level?
Reid-Built’s lawyer has $1,749,000. See my website for photos: www.MyFriendFernando.ca
said the cancellations were
necessary because the company Princeton Condo / Eau Claire
couldn’t get building permits Everything your heart desires at The Princeton Cityscape. One bed, one
issued within 60 days of the bath, third-floor condo with hardwood floors, double-sided fireplace, custom
agreements being signed. cabinetry, granite countertops, stainless steel appliances, heated storage,
The Alberta New Home in-suite laundry. See my website for photos: www.MyFriendFernando.ca
Warranty Program (ANHWP) Fernando Aramburu,
Royal LePage Realtor, 403.225-5000
and Canadian Home Builders
February 9, 2007 Page 25
BROCK from Page 24
Consumers less likely to forgive
builders who get caught short
“Once it is established that a His advice to builders: “Don’t (Brock Ketcham is an
triggering event in a force make an agreement to sell Edmonton-based writer who
majeure clause has occurred, what you can’t build at a specializes in consumer and public
the next step is to determine reasonable profit.” policy issues. He can be reached at
how it affects the parties to the Burnaby, B.C., home renova- email@example.com)
contract,” Edmonton lawyer tor Ralph Belisle, president of
Debra Curcio Lister of Miller Canadian Home Builders’
Thomson LLP wrote in a Association–B.C., agrees
2005 Alberta construction builders in hot markets should
communiqué posted on her avoid committing themselves
law firm’s website. too far into the future.
“In order for a party’s “The materials market and
obligations to actually be the labour market are really
suspended or excused, the volatile,” he says.
party seeking to rely upon it Janice Wong of Toronto,
must be unable to perform its spokeswoman for Tarion
contractual obligations . . . ” Warranty Corp., says the
Grant Ainsley, executive new-home warranty program
officer of the Canadian Home encourages builders to honour
Builders Association–Alberta, their contractual commit-
says consumers tend to be less ments, except in rare situations
forgiving than companies of where it would make good
the kind of pickle that a sense for parties to be released
member of the business world from the contract.
can get itself into. “This view is strongly
Builders get into such fixes supported by builders in
by trying to compete against Ontario,”Wong says.
cutthroat prices, Ainsley says. The governing Ontario
“They can get caught by New Home Warranties Plan
charging too little,” he adds. Act is silent on whether
“It becomes a very difficult builders are at liberty to cancel
situation.” contracts on the basis of unex-
Sky Wensel, chief operating pectedly high costs,Wong says.
officer for the Alberta New However, the act requires
Home Warranty Program, that all home contracts
notes his program has put commit the builder to building
together training packages for the home without “undue
builders to bring them up to delay” and that the builder not
speed on the business and unilaterally rescind the agree-
marketing end of running a ment solely due to a failure to
building business.These complete the home by the
include Master Home Builder closing date.
courses that, among other “Tarion’s experience is
things, give builders a basic that most vendors deal with
grounding in business law. difficulties in constructing
Wensel, who formerly their homes by extending the
practised law, says most relevant closing dates rather
builders take care to ensure than attempting to cancel the
they are on solid ground agreement of purchase and
before they cancel a contract. sale,”Wong says.
Page 26 February 9, 2007
Tired of hearing
“no” from banks?
See Page 31 See Page 30
Telework is a winning business initiative less greenhouse gas and more
But Canada lags behind other efficient use of resources.
Bell Canada estimates its
nations in recognizing its value teleworkers save 8,152 tonnes
of CO2 emissions annually in
anadian govern- day weekly working from commuting and space heating.
ments and business- home. In an effort to boost the
es have been drag- I’m also talking about formal number of federal civil servants
ging their heels on policies, training programs for who telecommute (about
a single business initiative that workers and their supervisors, 100,000 of 700,000), the U.S.
could increase productivity, and technical support. federal government has begun
provide an edge in global About 1.5 million Canadians withholding US$5 million in
competition, allow for better work from home, at least funding from every federal
emergency plan- occasionally, says agency not making telework
ning, save corporate OPINION Bob Fortier, available to all eligible
and government president of the employees.
dollars and help cut Canadian Telework But big business began
greenhouse-gas Association and seeing the benefits long ago.
emissions. InnoVisions Canada “We actually started in
That’s not to in Manotick, Ont., a 1986,” says Susan Garms,
mention a slew of half hour from senior consultant, telework
more content, less- Ottawa. solutions for Bell Canada.
stressed employees. That’s a far cry Photo courtesy of Bob Fortier At first, the company found
What is this from Japan’s target – Canadian Telework Association president Bob Fortier says 1.5 itself providing equipment to
magic bullet? it wants 20 per cent remote workers. It worked so
million Canadians telecommute, at least occasionally.
Telework. of the entire nation- well that, by 1992, the com-
I’m not talking al workforce to pany had a telework policy in
here about the
Sharon Adams telecommute by the smelling the coffee. About 11 of 20 miles (32 km) each day place and today about half of
occasional day Business Edge end of this decade. per cent of employees tele- and 2005 fuel prices. Bell’s 40,000 Canadian
working at home Governments commute part of the week and About 100 million U.S. employees telecommute.
on overtime, or waiting for a around the world recognize two per cent do so full-time. workers commute daily, most Part of management’s job,
repairman, caring for a sick the economic efficiencies of The U.S. National Technology alone in their cars. she says, is to examine how to
family member or toiling in a telework on a grand scale – Readiness Survey says US$3.9 There are additional savings more efficiently manage
home-based businesses. I’m fewer roads to build and main- billion could be saved annually in reduced costs in buying, resources.“The No. 2 expense
talking about people with tain, less commuter pollution, on fuel alone if every worker building or leasing office in any business is real estate,”
salaried positions working for fewer buildings to construct who could telecommute did space to house employees and she says.
companies and government and heat. so 1.6 days per week – based energy to heat that space, not
formally spending at least one The U.S. is awake and on the average U.S. commute to mention the green effect – See @WORK Page 29
BFL CANADA INC.
Penny Dyte, Vice President, Operations,
is pleased to announce that Sandra St.
Jules has joined BFL Canada Inc. in the
Calgary office furthering BFL’s expansion
into Western Canada.
Sandra joins BFL as a Vice President
and Client Executive, bringing with her
25 years of experience in all areas of
insurance consulting including marketing,
risk identification and transfer for Alberta
specific industry sectors. Sandra’s ability
to be a strong client advocate; simplifying Sandra St. Jules
insurance risk and mastering process
through her insight of the clients business and needs, makes
her a valued addition to our client focused culture.
BFL Canada Inc. is Canada’s largest privately owned,
independent insurance broker. BFL provides professional
insurance and risk management services to all industries
through its seven Canadian offices and to its Global clients
through a strategic alliance with A.J. Gallagher & Co. in the
U.S. as well as over 100 countries around the world.
BFLs success in Canada is based on providing a unique
entrepreneurial and creative environment for its employees
inspiring exemplary service to its clients.
BFL Canada Inc.
2300 Scotia Centre
700 – 2 Street SW
Calgary, AB T2P 2W2
February 9, 2007 Page 27
BOWEN offers new
solution to labour woes
professionals will require a great
Immigrant WorksTM deal of extra management time.
matches skilled BOWEN is there to support and
bridge the gap as required.
foreign workers All Immigrant Works™ candidates
with professional are eligible to work in Canada and,
in many cases, have lived here for
opportunities several years. They are often
unemployed or underemployed
n Alberta, corporate growth simply because they have not
trajectories are streaking skyward been able to get a foot in the door
at an unprecedented rate. That’s to gain valuable Canadian work
good news for all of us. But there is experience. All have undergone
a negative side to the current wave rigorous preparations and screening
of prosperity. and are ready to work. They are a
Skilled labour is at a premium. previously untapped valuable
Human resource professionals employee pool. Leading companies
spend most of their time asking: are recognizing that BOWEN’s
“Where can my busy company Immigrant Works™ program is an
find the technicians, engineers, ideal solution for their personnel
accountants, geologists, needs and are responding in a big
geophysicists and IT experts way.
it so desperately needs?” “Statistics indicate that new
BOWEN Workforce Solutions Inc. immigrant professionals tend to
has the solution. The company has stick with the companies that give
partnered with Alberta Human them their first break,” Clark says.
Resources and Employment and “If you give these talented people
Calgary employers to provide the an opportunity now, you will
new Immigrant Works™ program. probably not have turnover or
As one of the premier recruiting retention issues down the road.”
companies in Western Canada, In addition, such new cross-
BOWEN has spent the last 32 cultural hires bring valuable
years developing innovative intangibles along with them when
workforce solutions. Now BOWEN’s they enter a new workplace. Apart
Calgary-based team is stepping up from their training, knowledge, skills
to alleviate the skilled labour crunch and experience, they bring a global
by matching qualified unemployed perspective that can broaden the
or underemployed foreign-trained From left, Marilynn Balfour, Director of Career Resources for BOWEN, horizons of their employers,
professionals with technical with Immigrant WorksTM candidate Munazza Irfan and particularly those aiming to
employment opportunities. Janice Clark, manager of the Immigrant WorksTM program. penetrate international markets.
BOWEN has put together a There’s no disputing the fact that
standout pool of well-educated Under terms of the Immigrant the human resource support BOWEN offers a made-to-order
immigrant professionals who have Works™ program, BOWEN prefers necessary to help new candidates pipeline to some amazingly diverse
mastered university-level reading, to place candidates as interns, on and employers eliminate the cultural and multi-faceted skills. Whether
writing, listening and speaking either a four-, eight- or 12-month gaps. Once candidates are placed, you need a mechanical engineer or
skills. Their technical abilities are basis. It’s the ideal way for new BOWEN’s award-winning service a civil engineer, an accountant or a
documented in accordance with immigrants to acclimatize to new package includes individual financial analyst, BOWEN has a
recognized international qualification ways of doing business, or to a coaching and a co-development superb candidate to fit the bill.
assessment procedures. They’re corporate culture that may not be plan shared by interns and These are well-trained, highly
ready to work and eager to immediately familiar. managers as well as a third-party educated, EXPERIENCED profes-
contribute to the long-term “Even the most qualified consultation service. sionals, eager to demonstrate their
success of small-, medium- and candidates may require a certain “We’re the objective third party abilities. Many have improved their
large-sized organizations. period of time to get comfortable and essentially an extension of the resume by completing master’s-level
Oil and gas companies are on a cultural basis. It’s much like a company’s human resource depart- programs since their arrival in
particularly well-suited to the skill new-grad program, helping recent ment. Either the manager or the Canada.
sets that these highly qualified graduates to get accustomed to a candidate can call us in case issues “Most of the people we’re dealing
candidates bring to the table, says specific corporate culture. It’s a do arise. We’re happy to coach the with bring an absolute minimum of
Janice Clark, who manages the developmental period, a learning intern, the manager or both, in case seven years experience to the
Immigrant Works™ program on period,” Clark adds. of communication gaps,” Clark workplace,” Clark sums up.
BOWEN’s behalf. “We work closely Such internships are ideal for emphasizes. For more information, please
with these candidates to make the enabling candidates to acquire BOWEN is there to ensure that access the BOWEN website:
most of their interview skills, as well the work experience they need the transition for both the new www.bowenworks.ca or
as to identify the transferable skills to complete their professional employee and the employer goes contact Garvey Chui at
they possess that are best-suited to certification in Alberta. as smoothly as possible. Employers IW@bowenworks.ca or
potential employers.” Naturally, BOWEN provides all need not fear that the immigrant 403.538.3344.
■ Website: www.bowenworks.ca ■ E-mail: IW@bowenworks.ca ■ Phone: 403.538.3344
Page 28 February 9, 2007 Use Someone
New Life Capital Else’s Money
Helps You Profit
See Page 17 See Page 22
Entrepreneur is looking for social returns
ill Young spent the working with two franchisors,
first phase of his Venture-capital firm invests in disadvantaged sector Active Green + Ross, a chain
career making money of auto-service centres in
and he did very well value in the history of Wall Young says that finding the associates at Social Capital have southern Ontario, and the
at it. A former chartered Street. right companies and employers spent a good deal of their time moving company Two Men
accountant who also holds an Young’s investment went who understand his concept looking for partners in the And A Truck.
MBA from Harvard through the roof. has been difficult. non-profit sector. Social Capital has agreed to
University,Young started “I’m one of those lucky Consequently, Social Capital People there understand finance a Two Men franchisee
Hamilton Computers and people whose ship came in in has grown slowly and has only the societal benefits.They are who left home before he was
turned it into a national the private sector,” says the invested about $1.3 million in generally enthusiastic, but too 16 and wound up in a shelter
company that bought entrepreneur, who is now 52. eight companies. often lack practical business for the homeless.
computer hardware “I have more Nevertheless, Social Capital experience. This individual has been
from manufacturers OPINION money than I’m has found some worthy Now Young has shifted his employed for more than 20
and resold it to ever going to need.” recipients. focus in order to expand the years and has the ability to run
commercial and Five years ago, he These include a downtown portfolio. his own business, but he also
institutional clients. decided it was time Toronto bicycle courier He and his associates are understands what it means to
Sales had reached to change direction company that hires homeless looking at lending to prospec- be down and out. Favourable
$200 million and use his money youths out of shelters, and a tive franchisees who frequently financing will help him get
annually by the time to make a difference Winnipeg home-renovation have difficult obtaining bank started and he will be in a
he sold out to GE in the world. company that is employing financing and must turn to position to hire people stuck at
Capital. He founded urban Aboriginals. family or friends for funds to the margins.
That made him Social Capital Young has also put money keep them going till their Young has found selling a
wealthy, but Young Partners, a venture- into a Vancouver property- businesses begin generating concept a bigger challenge
was fortunate capital firm that maintenance firm that recruits cashflow. than pitching a product. But
enough to enjoy a invests in startup women who have been victims “About a year and a half ago he has no doubt that he’s made
second windfall. D’Arcy Jenish companies and of violence and men from the we decided that if we’re going the right choice.
In the mid-1990s, Business Edge looks for a social socially blighted downtown to make this a mainstream idea “I was hugely lucky,” he
his cousin Bob rather than a east side. we need to figure a way to says. “I can’t conceive of
Young co-founded Red financial return. The women generally do engage the private sector,” he needing more money. I wasn’t
Hat Inc., which has since In exchange for low-cost administrative jobs while the says.“We needed a cookie- interested in running another
become the world’s largest financing, business owners men handle security. cutter model. Franchising was company that was going to be
distributor of the Linux must agree to hire people who “Our model helps the a natural.We can work with a stock-market darling.This is
operating system. are on the sidelines and facing job-ready segment of proven systems. what I’ll do for the rest of my
Young bought shares barriers to employment. disadvantaged populations,” he “We don’t have to figure out career.”
through a private offering Recruiting must be done says.“These are people who the business side.Ten years And if it’s third time lucky
when Red Hat was a startup. through recognized social are ready to help themselves. from now we could have for Bill Young, the world will
The company went public in agencies that provide training They just need to be given a thousands of people working be a better place.
August 1999, and enjoyed the in preparation for entering the chance.” for hundreds of franchises.” (D’Arcy Jenish can be reached
eighth highest first-day gain in workforce. Up till now,Young and his To date, he has been at firstname.lastname@example.org)
Chinese juggernaut starting to slow down
during the crisis-ridden period of from around 20 per cent last one and two per cent
Investment spending 1997-2001, and a gradual upswing from June to about 15 per cent EXPORT through 2005 and much of
2002-2006. most recently.
moderating as The latest data from China showed The trade data also looks
ANALYSIS 2006, but late last year it
started moving higher, and
growth of 10.4 per cent year-on-year promising. Although China’s most recently is at 2.8 per
inflation on the rise in Q4/2006.
This is a bit of a deceleration from
exports continue to grow at
rates of 25 to 30 per cent
The authorities are
o forecast of the world growth of over 11 per cent six months annually, the trend in anxious to avoid an
economy is complete with- earlier, but given the reliability of the U.S. imports from China has inflation outbreak, and
out an analysis of China. statistics, that’s not saying much. seen a downshift in the past have raised interest rates,
Many would say that, Looking beneath the headlines, eight to 10 months. restricted credit and
where China goes, so goes the world – though, reveals some early signs of a More importantly, China’s allowed the yuan to
a description once reserved for the U.S. slowdown in China. imports have slowed, from appreciate gradually.
economy alone. One of the greatest fears is that 25-per-cent growth to the Money and loans growth
These days, according to the latest China will significantly over-invest, mid-teens lately. have slowed in response.
World Bank methodology, China and that there will be a crisis and And, although the data is Stephen Poloz What this all suggests is
accounts for just over 15 per cent of recession as the economy adjusts to that unreliable, retail sales growth Export Development that more official actions will
the world economy, compared to the investment overhang. has slowed from around 25 Canada be forthcoming, if necessary,
U.S. at 20 per cent and Canada at Accordingly, a moderation in per cent to under 15 per but a slowdown is
under two per cent. investment spending would be good cent. increasingly likely, one way or another.
And with growth in China averaging news, and there is some. This analysis suggests that not only is The bottom line?
over 10 per cent of late, that means that Back in mid-2006, investment the dangerous growth in investment It is too early to declare that China
China is contributing close to one- spending was rising at a pace in spending beginning to gear back, but is slowing, but the early signs are there.
third of total global economic growth. excess of 30 per cent annually, the hoped-for expansion of domestic Once a consensus emerges on this,
Not surprisingly, then, a chart of and the most recent data are showing consumption spending may not be global commodity prices are likely to
China’s historical GDP growth looks 25 per cent. happening. see another down leg.
like a chart of the world economy. To go with that, output of cement And just in time, too – China’s (Stephen Poloz is a senior vice-president
There was a boom of 11- to 13- has slowed from over 25-per-cent inflation rate has begun to move and chief economist for Export
per-cent growth in 1994-95, a growth to around 15 per cent. noticeably higher. Development Canada. He can
slowdown to seven to eight per cent Industrial production has also slowed CPI inflation was drifting between be reached at email@example.com)
February 9, 2007 Page 29
@WORK from Page 26
Working from home seen as strong incentive
Estimates on real estate cost With looming labour Telework has another practise telework once a year, Canadian employers an
savings range from 25 to 90 shortages, “we’re looking to be business benefit that can prove so you can feel confident some estimated $16 billion yearly.
per cent, or about US$8,000 the employer of choice,” says vital in the Canadian climate. of the work will continue, Avoiding one cold a year
per worker, according to the Garms, and high on employ- “It’s good to have workers even if the office isn’t open.” could save a company plenty.
Institute of Distributed Work ees’ wish lists is work-life who can work out of the But “never mind pandem- I’d add savings from stress
in the U.S. balance – less time driving office in case they can’t get ic,” says Fortier.“Think of reduction, too.The Canadian
British Telecom has a through traffic, more time to the office because of some the savings in the cold and Mental Health Association
workforce of more than driving golf balls, driving kids natural, man-made or technical flu season.” British Telecom estimates about 20 per cent
80,000 employees, and to practice, having kids drive disaster,” says Garms. noticed teleworkers take only of a company’s payroll goes
estimates its 9,000 teleworkers you crazy. Businesses in eastern about a quarter as much sick to dealing with stress –
save the company £35 million Offering telework is like Ontario and Quebec have had time as office staff. absenteeism, turnover, short-
(that’s better than Cdn$80 mil- giving an employee an extra such experiences, says Fortier. Full-time Canadian term leaves, counselling,
lion) a year, according to com- couple of weeks of unpaid “Snowstorms, strikes, wind- employees took an average of medication.
pany research done in 2002. time off, because the average storms – every time a building 9.2 sick days in 2005, says Health Canada pegs the cost
As well, the company has Canadian spends 12 full days shuts down, the company Statistics Canada – often from of work-life conflict to
saved recruitment costs, since a year getting to and from loses,” he says.“With telework, illnesses contracted at work. Canadian business at up to $10
attrition is less than four work, according to Statistics you’re not putting all your Absenteeism accounts for billion a year.
per cent among flex and Canada’s 2005 General Social eggs in one basket. I would nearly 100 million lost work Telework can reduce or
teleworkers. Survey. encourage companies to days annually – and costs eliminate a lot of that stress –
and those costs.
Telework also allows
Mackenzie Valley pipeline hearings get green light employers to tap into a new
pool of workers – disabled
workers, retired workers who
The Canadian Press hearings that dealt with issues finish their hearings but they’re the route was set up in 2002. would continue working so
affecting the Dene Tha’ First still stopped from making their But the Dene Tha’, who nu m- long as they don’t have to
A judge has decided that Nation. final report,” said Dene Tha’ ber about 2,500 members on commute, workers in remote
all scheduled social and That means the sessions can lawyer Robert Freedman. seven reserves in Alberta, British areas, says Fortier. Even
environmental hearings into a go ahead as previously planned, Phelan’s original ruling out Columbia and the Northwest workers in other countries.
proposed $7-billion natural gas which will help the hearings of Federal Court in Vancouver Territories, were excluded. So why don’t more
pipeline down the Mackenzie finish earlier. But the panel still said Ottawa failed to consult That’s because the final leg of businesses embrace telework?
Valley can go ahead. won’t be able to issue its final with the Dene Tha’. the pipeline and the infrastruc- We’ll go into that in Part II
Federal Court Justice report to the National Energy A re g u l a t o ry process that ture connecting it to existing of Telework in the next
Michael Phelan has lifted a stay B o a rd until the Dene Tha brought federal energy and networks would be in northern edition of Business Edge.
he issued last November on all concerns are dealt with. environment officials together Alberta, falling under that (Sharon Adams can be reached
sessions of joint review panel “We’ve agreed to let them with Aboriginal groups along province’s jurisdiction. at firstname.lastname@example.org)
Page 30 February 9, 2007
Collaboration driving new ideas on web
icrosoft’s new source software. But it’s pretty who will get the pet.” of others.Wishes can be views but few positive votes.
Windows Vista clear there won’t be a Bill “My current favorite idea is naughty or nice.“Funding a Cambrian House has also
may be pretty, Gates or (Google co-founder) called JumbleLunch,” says Trip to Build an Orphanage in spawned the website
and you’ll Sergey Brin gazillionaire Sikorsky.“It allows people who Mozambique” was so popular gwabs.com, which allows you
probably buy it with your next emerging from the freebie travel a lot to meet up with that the wishee received to challenge fellow employees
computer. But some of the software world. Or is it? people in other cities for $10,000. to “desktop combat.”
smartest people in the world Enter Michael (“MJ”) business networking.You Naughty wishes include “A That will certainly do lots
won’t touch proprietary Sikorsky and his little Calgary- might say, I’m going to be in Porsche – Because I Am for business productivity.
software. based idea-fermenter called Boston tomorrow and I don’t Beautiful” ($175,000) and “An Prezzle.com lets you send an
When MIT guru Nicholas Cambrian House Inc. It’s 50 or have anyone to have lunch Evening with a Dozen electronically wrapped giftcard
Negroponte announced plans so people now, but Sikorsky with, so I’d love to have lunch Hookers and a Video Camera from iTunes or Amazon by
to create US$100 laptops for claims Cambrian House is with another professional.” to Record It” ($10,000). Like paying an extra 97 cents in
children around the world, he capable of “becoming the Cynics might say this is just some self-deluded contestants “prezzle postage.”
chose to use “open-source” world’s first billion-person a high-tech version of drop- on Canadian Idol, these
software – programs created by company.” He aims to harness ping in on the local Rotary entreaties received lots of See KEENAN Page 31
collaborative effort and distrib- the power of open-source club, but Sikorsky doesn’t care.
uted for free. development, while putting Cambrian House doesn’t judge
Open-source is one of the money into the hands of peo- the ideas (except for removing
Really Big Ideas in ple with ideas and “horribly offensive” ones.).
technology. It FUTURE/ the expertise to “We believe in the wisdom
allowed Linus PRESENT make them happen. of the crowd,” he says.“So,
Torvalds, a student He calls it “crowd- for example, if somebody posts
at the University of sourced software” an idea, someone else might
Helsinki, to make and compares it to point out that it’s already been
the Linux operating YouTube and done, that there’s nothing
system a household Wikipedia. unique here.”
word. He only “If you think In addition to commenting,
trademarked the about all the mass community members can offer
name to keep others collaboration that to write computer code to
from registering it. was occurring on implement an idea, or to
Unless you’re a the web,” Sikorsky prepare creative materials for
geek, you probably says,“the natural them.The idea’s originator can
don’t run Linux on Tom Keenan next step was to find accept these offers and dole
your desktop or lap- Business Edge a way to help out royalty points and glory
top. But you’re people harness the points. Royalty points may
undoubtedly con- wisdom and the par- actually translate into cash if
nected to a Linux system ticipation of crowds.”Through the idea is a success.
somehow, either on computers his website, people suggest “A whole bunch of cheques
in your company’s back office, ideas, no matter how wacky, and went out the other day,” says
or on the Internet. o t h e rs react to them. Kathy Hnatiuk, also of
Research firm IDC said, in The company boasts a global Cambrian House.There’s a
August 2006, that “Linux “community” of about 10,000 venture capital side to this,
servers now represent 12 per members, who can join for too. Sikorsky says he’s already
cent of all server revenue.” free.To date, they’ve submitted raised $3 million “in an
There’s one huge problem almost 4,000 ideas for new oil and gas town” to invest
with open-source.Where’s the software products that can be in the most popular ideas.
money? Sure there’s profit in distributed over the Internet. The three biggest success
selling hardware bundled with Example: Pet Divorce Court, stories so far are robinhood
software like Linux, and com- where “feuding couples or fund.com, gwags.com and
panies such as Red Hat man- ex-couples would enter prezzle.com. Robinhoodfund
aged to charge for training, into a binding arbitration is a website for people to post
support and manuals for open- to decide by popular vote wishes and vote on the wishes
February 9, 2007 Page 31
RRSP clock ticking – Strahl halts barley ballots
but are we listening?
The Canadian Press Canadians responding to a sur-
vey said they considered their
until process is simplified
Far too many working
Canadians take a dartboard-
RRSP to be a financial plan.
“It is an element. It is a Minister says their accountant involved to fill
out exact data,” said Strahl.
The wheat board and its
supporters have condemned
and-blindfold approach to their savings vehicle but a financial “That’s ridiculous, there’s no the three-question ballot as
re t i rement investments, f i n a n- plan includes many, many other forms were way I want that kind of detail meaningless and confusing.
cial advisers say, blindly buying considerations,” says Tina Di on a ballot.” They argue it gives farmers a
RRSPs in the hopes of hitting Vito, d i rector of re t i rement too complicated Ballots will now be mailed false impression that the
large tax and investment returns solutions for BMO Financial out on Feb. 7 and returns must board can survive without its
without developing a plan that Group. The Canadian Press be postmarked no later than monopoly.
aims for success. A plan helps focus retirement March 13 to be eligible. Strahl insists it can remain
“The mistake people make goals based on when the Federal Agriculture Minister The Conservatives are viable, but others believe the
with RRSPs and that type of money will be needed and the Chuck Strahl is delaying a following through on an board doesn’t have the infra-
investing is they don’t match it lifestyle expected upon retire- plebiscite on the future of the election promise to let farmers structure that would be needed
up to what they’re trying to ment, with a detailed invest- Canadian Wheat Board’s barley market their own wheat and to compete with large multina-
achieve,” says Clay Gillespie of ment strategy determining how monopoly so the eligibility barley. Strahl has promised a tional grain companies.
R og e rs Group Financial in much money needs to be set process can be simplified. wheat plebiscite at a later date. Manitoba Agriculture Min-
Vancouver. aside in registered and non- Ballots we re supposed to Critics we re quick to ister Rosann Wowchuk took
As the March 1 deadline for re gi s t e red investments to have been mailed to eligible denounce Strahl’s changes as no issue with a delay intended
contributions for the 2006 tax achieve those goals. farmers in Western Canada, further eroding the plebiscite’s to simplify the barley plebiscite.
year approaches, many will fork She advises inve s t o rs to enrol with March 6 the deadline credibility. But she said Strahl should not
over their money simply to in an automatic monthly for getting return votes in the While KPMG’s original stop with revising the eligibility
generate a large tax refund. deduction program to avoid the mail. questions would have meant form.
“People are looking at the last-minute rush and help foster But Strahl says he has asked more work for farmers to “I would encourage him at
RRSP as a tax deduction rather a discipline to save. KPMG, the accounting firm declare their eligibility, Liberal the same time, since he’s
than a retirement savings pro- Age, risk tolerance and handling the vote, to simplify agriculture critic Wayne Easter delaying, to simplify the ques-
gram,” he says. investment timeline are some of the declaration forms farmers says it would have ensured that tion,” said Wowchuk.
ment for a lot of
“ R e t i re the factors that will determine must fill out with their only farmers who have a real “Right now he has three
people is so far off that they how conservative investments ballot. stake in the outcome could questions that are not direct
don’t even think about it and should be. Given that people are He said he became con- participate. questions.”
RRSPs are more of an ave nu e living longer, they could add cerned when he saw a final “This is clearly a way for the The Western Barley Growers
to reduce the amount that goes more risk in their portfolios, version of the ballot, which minister to manoeuvre the Association has lobbied the
to government.” s ays Michael Aziz, re gional asked farmers to declare their process and bias it even more to government to give a greater
Overwhelmed by a slew of vice-president of investment barley tonnage and acreage for get the results he wants,” said s ay to barley farmers who
adve rtising attempting to secure products for Desjardins each of the last five years. Easter. produce larger crops.
their business, only about half of Financial Security. To be eligible, farmers must Strahl said no changes will be But president Jeff Nielsen
have grown any kind of grain made to the question, which s ays he understands that
KEENAN from Page 30 last year and grown barley in at gives farmers three choices: To drawing that kind of line is
least one of the last five years. maintain the board’s monopoly, complicated.
Sharing ideas on Internet Strahl says the size of the crop
“Every single pro d u c e r
to scrap the board’s role as a
barley marketer, or to allow the
board to be an active partici-
He adds the plebiscite
question is clear enough that
farmers will know exactly what
brings risks, rewards would have had to have gotten pant in a free market. they’re voting for.
Sikorsky says this venture people to work on the idea
has “done $55,000 in sales on and to execute it.”
that since it was developed, Volker sees an interesting
and Christmas was a phenom- spin from a legal point of
enal month for that brand.” view. “Once you’ve disclosed
Of course, the Achilles heel your idea this way,” he says,
of Cambrian House is that “you can’t patent it in Canada.
everybody’s ideas are out But you do have a one-year
there, fully exposed, ripe for window to file a U.S. patent.
the picking. But Sikorsky So you could put up your
doubts that idea theft will be a idea, see what the crowd
huge problem. He believes thinks about it, then run to
people are basically trust- the U.S. and file, and you’d
worthy, and the crowd’s input have solid proof of the date of
will push ideas along quickly.
If your idea is appropriated,
he says, “you’ve learned that
When asked about this
strategy, Sikorsky laughs and
Let’s face it... For entrepreneurs, talking to a bank
about funding can be like talking to a, well, brick wall.
you actually have good ideas, says,“That’s exactly what I
and should learn to execute would do if I had a good That’s where Venturefunder comes in.
them yourself.” idea.” But he probably won’t What is Venture funding? The projects we finance would never get a look from the bank.
Michael Volker, founder of be patenting the Cambrian We look for entrepreneurs with a vision and a passion to make it work. For exceptional products
the Vancouver Angel Network House concept anytime soon. or technologies, exceptional and growing markets and outstanding management. Many projects are
which also invests in new “You can find an example of not yet into the mainstream commerce to be financed by the banks. This is why we need venture
ideas, likes Sikorsky’s concept, every single element of what financing; Bring us excellent projects and we’ll find a way to fund them!
“because it’s an idea about our business is on the web,” he
ideas.” says,“and a very successful
“You know,” he muses,“I
get calls all the time from
people from all over the world
one.What you can’t find right
now is someone who’s tied
together all the pieces the way
“ Developing world-class software takes
talented people, capital and a lot of patience.
Venturefunder rolled up their sleeves; first to
understand our business, to develop our story
saying they’ve got a great idea we have.” Call Jim Thomson today,
(and all financial documentation), then finally
and all they need is a bit of (Tom Keenan is a professor at toll-free at
to source the capital for us. I don’t know where
money. I tell them ideas are a the University of Calgary and an 866.744.4754
dime a dozen, but what you
need, and I think this guy is
moving in that direction, is
expert on technology and its social
implications. He can be reached at
else I could have found the money to do this.
Dragan Marjanovic, President, Mediashaker ” Visit the website at:
Page 32 February 9, 2007
Interactive gamers pushing right buttons Radical has scored hits with
Growing talent video games based on The
Simpsons,The Incredible Hulk and
pool drives last year’s Scarface, based on the
Al Pacino film about a ruthless
Canadian Cuban mobster that Zmak calls
a “phenomenal success.”
expansion It was marketed to computers
as well as Playstation 2
By Sheldon Gordon and Xbox consoles.
Business Edge Radical intends to use
Vivendi’s channels for further
anadian developers c ro s s overs from the console
of interactive games space into the online and hand-
a re emerging as a held markets.
thriving high-tech “We believe that there’s con-
sector. ve r g e n c e,” says Zmak. “The
Whether the platform is a online component in the con-
c o n s o l e, c o m p u t e r, mobile sole space is allowing us to
phone or interactive TV, broaden out of a typical box
Canadian firms are playing a retail-sale product that’s a sin-
significant role in the increas- gle-player experience, to that
ingly popular entertainment product being extended in its
medium. value through dow n l o a d a bl e
North American revenues in content and multi-player expe-
this industry surpass US$7 riences (online).”
billion annually, rivaling movie Content available online for
box-office receipts. $3 to $10 can add five to 20
“Canadians have always been hours of game play to a prod-
fascinated with being in the uct, and allow the purchaser to
entertainment industry,” says compete against other real play-
Rob DePetris, vice-president of ers instead of artificial intelli-
Silicon Knights, a priva t e l y gence.
owned, independent console- BioWare Corp. of Edmonton
games developer in St. Bayne Stanley, Business Edge is also thriving following acqui-
Catharines, Ont. Radical Entertainment CEO Kelly Zmak has a big winner with the video game Scarface. sition. A California-based pri-
“The difference is that, unlike vate equity firm, E l eva t i o n
the film industry, they don’t Rob Barrett is a typical since January and the revenue risks have gone through the Partners, scooped up BioWare
have to go to Hollywood to Canadian interactive entrepre- model will be online April 1. roof,” says Kelso of Interactive in 2005 and merged it with
make a video game.” neur. He spent 10 years at the Four years in development, the Ontario. Pandemic Studios to form a
Dozens of best-selling video- D i s n ey Interactive studio in game is being marketed to the “It’s starting to enter the well-funded independent game
game titles have been made by Victoria, B.C., before deciding U.K., Europe and Canada. sphere of a special effects-driv- developer.
the Canadian affiliates of to set up Blue Castle Games Players subscribe for a mini- en feature film.” Since then, BioWa re has
California-based Electro n i c (BCG) in Burnaby, B.C., in mum of three months, spending Increasing development costs e s t a blished a new studio in
Arts in Vancouver and France’s 2005 with two colleagues. from £6 to £35 per month. and the desire to “cross over” Austin, Tex., to develop its first
Ubisoft in Montreal. “After that many years in the (The game is denominated in from the console market into er
m a s s ively mu l t i - p l ay online
Japan’s Koei in Toronto is set industry, you want to see if you pounds, but players can pay in others have sparked a con- (MMO) game.
to launch its first Canadian- can do things better,” he says. pounds, euros or loonies.) solidation trend: Homegrown BioWare has a total of 340
made game, Fatal Inertia, this BCG will release its first By its third year, the company independents are being ac- staff at both its Edmonton and
year for next-generation con- game this summer, The BIGS. expects to have 48,000 players, quired by big foreign players. Austin studios. Last year, it
soles that include Microsoft’s The Major League Baseball who could generate $40 mil- Radical Entertainment of formed a division to develop
Xbox 360, Sony’s PlayStation3 game features larger-than-life lion in revenue. BBGI is already Vancouver, originally an inde- games for handheld platforms,
and Nintendo’s Wii. player models and ballparks, as planning further online games, pendent, has benefited from the beginning with the Nintendo
The foreign-owned develop- well as pitching, batting and including pay-per-play soccer bigger development bu d g e t s DS.
ers set up in Canada when the fielding animations. for Asian markets and NHL and marketing skills provided by Silicon Knights, for its part, is
low-valued loonie provided a The BIGS will be available hockey. multinational Vivendi Games, resisting the consolidation and
competitive edge and their for the next-gen consoles, but Co-founders Stephen O’Neill which acquired it in 2005. crossover trends.
presence created the demand those who buy the console and Tim Lloyd favour the With 230 employees in its It continues to make action
for a growing Canadian talent game will also be able to go Internet space partly because 70,000-sq.-ft. studio, Radical games for consoles, but it’s
pool. online and compete against up their background was in build- has 10 to 15 per cent more staff taking on more, and bigger,
A look at the membership of to four players. ing online applications. But they now than it did when it was projects for other publishers.
the International Game BCG is already at work on also prefer the online business acquired, says president Kelly It broke away from exclusivi-
Developers Association, a glob- u
another m lti-platform next- model. Zmak. ty with Nintendo and is now
al group, shows there is one gen title, but awaits the final Says Lloyd: “We’re breaking He expects the number will working with Microsoft on the
Canadian for every four U.S. development fee for The BIGS away from the traditional games rise to 270 employees by the Too Human trilogy and with
members. from its publisher, New York- model of distribution – finding end of the year, as the studio Sega on an unannounced proj-
These college-educated pro- based Take-Two Interactive a distri bu t o r, packaging the has four projects in develop- ect.
grammers and artists have Software, in order to turn a game and distributing it to the ment. Silicon has doubled its team
become the backbone of a profit. store shelves. We cut all those Radical continues to con- of game developers to 140 from
flourishing home-grown indus- “Publishers always try to hold costs out. And we get to keep ceive and design games under 70 just three years ago.
try. back some money until the end our IP (intellectual property). It its own brand, but V ivendi It used to produce one con-
“The players in Canada are to keep you hungry and makes more pro f i t a ble sense provides financial muscle. sole game at a time – earning
successful all over the world,” focused,” says Barrett, “and that way than partnering with “They are responsible for the $5-$7 million in advance royal-
says Ian Ke l s o, p resident of that’s where your profit lies.” someone.” publishing process and for the ties from publishers – but now
I n t e r a c t ive Ontario, a trade Meanwhile, another Van- Independents that succeed, marketing,” says Zmak. makes two at a time with a rev-
association of 100 Ontario c o u ver startup, Big Bucks however, find that multination- “Those are skillsets that have enue stream of $10 million per
interactive digital media com- Games Interactive (BBGI), is al developers want to acquire never existed within Radical, project, reflecting the souped-
panies. “They fare very well on bringing on Big Bucks Footy, an them. which has always been a pure up graphics and other advances
the global scene, but nobody online soccer game where For independent console- developer. of the seventh generation of
really knows them as Canadian enthusiasts manage teams and game developers, development “Part of the beauty of the console games.
companies, like you would a compete for cash. budgets have ballooned to $8- marriage with Vivendi has been
film company.” The beta version has been up $12 million a title, “and the the complementary skillsets.” See SURVIVE Page 33
February 9, 2007 Page 33
SURVIVE from Page 32
Silicon’s DePetris recalls that them is going to be a hit.”
the company made its first Big Blue Bubble (BBB) in
video game for only $25,000. London, Ont., which originally
He acknowledges the developed games for consoles,
takeover trend in the games became a leading developer
industry, yet he’s not convinced of handheld interactive
that independents are destined games, with distribution in 80
to be bought by either a countries.
bigger developer or by one Now, it’s also targeting the
of the 10 or so major publish- PC market.
ers. Last July, BBB released its
“We’ve stayed independent f i rst computer game, Pop-A-
for 15 years and that’s a huge Tronic, and will follow this year
time in the games industry,” he with Geeks Unleashed, which
says. “I think we can survive. pits a player “against some of
The reason why we’re so suc- the smartest, yet geekiest play-
cessful is creativity. We’re very ers on the planet.”
content driven. We’re making Founder and CEO Damir
games we ourselves want to Slogar says moving into the PC
play.” space was a natural progression,
At Splashworks, an inde- since “it’s pretty close to mobile
pendent in Toronto, the accent games in terms of development
remains on advertiser-support- time and the way in which the
ed online games (“adve r - games are developed.”
games.”) He expects the PC division
The company has developed will generate 10 per cent of
more than 300 titles in the BBB’s revenue in 2007 (versus
past eight years, becoming 30 per cent from mobile, 30 per
Canada’s leading producer in cent from console and 30 per
this space. cent from other projects).
Splashworks has a client base The company began devel-
of some 55 consumer-goods oping games for the cellphone
companies and ad agencies. It market only in 2004.
also has a library of more than Last year, it re l e a s e d
100 titles that clients can GoodFellas, Pat Sajak’s Blackjack
license and brand to suit a par- Bowling and 2 4, based on
ticular ad campaign. Fox TV’s counter-terrorism
Although Splashworks makes thriller.
almost all of its money from 24 has been a critical success,
adver-games, it has begun winning a number of awards,
producing downloadable games but Slogar says it is too soon to
that target individual gamers know if it will be a financial
rather than corporate clients. success. (Jewel Quest, a puzzle
Two will be released this year. game, has been its biggest hit
Online game developers such so far, selling two million
as Splashworks operate in a copies.)
less-complex value chain than The company has produced
those producing for console or several titles for the handheld
handheld platforms, said console market, and has two in
Jennifer Crisanti, the company’s development for release next
co-founder and vice-president Christmas on the handheld
of new business development. Nintendo DS. Meanwhile, it is
“It’s a lot easier for us to devel- developing Hobby Shop for the
op and release,” she adds. Wii next-gen console.
Over the Christmas holidays, H o b by Shop has alre a d y
for example, Splashworks achieved one distinction – it
speedily designed Rosie vs. is among the 10 finalists
Trump for one of its new est in Telefilm Canada’s Gre a t
clients, the cable-TV Game Canadian Video Game Com-
Show Network. petition.
Gamers were able to go to In December, 69 independ-
the GSN.com website and join ent video-game developers
in the celebrity slugfest as it submitted applications to vie
heated up early in January. for up to $2 million in financ-
The space includes just the ing and valuable industry men-
developers and a small number torship.
of online distributors who are Telefilm, a Crown corpora-
re l a t ively easy to reach, says tion, initiated the contest as a
Crisanti. way to give an extra boost to
“They’re always looking for the home-grown games indus-
new content, so once you get try.
to a certain level of develop- Says Slogar: “We’re going to
ment, they will continue to c reate brands that stay in
look to you,” she says. Canada.”
“You just have to get enough (Sheldon Gordon can be reached
games out there, and one of at email@example.com)
Page 34 February 9, 2007
Depression causing havoc in the workplace
“So far as I know, University want to babysit their younger
Employers offer QUOTE . . . of Toronto is unique among brothers or sisters. But parents
Canadian universities because still need a break from their
assistance they have someone like me set- busy lives.”
programs to “Once companies ting up these programs and
making sure they are well run,”
Earlier this month, Kids &
Co. began a test program in
begin to realize she said in an interview before Calgary, aimed at helping
combat problem people have a life the conference. corporate employees with
The University of Toronto aging parents.
By David Hatton
outside of work even closes down for 10 to 12
days at the end of each year to
Enbridge Inc., Royal Bank of
Canada, Nexen Inc. BP Canada
and embrace that, “give all of its employees a and Deloitte Inc. have already
ow to best help break,” says Parnass. signed on to participate in the
employees juggle then the entire Everyone from maintenance six-month pilot project based
work and family
along with other
dynamic begins to workers to office staff locks
their doors and leaves the
out of a south Calgary retire-
busy parts of their lives is change and it – Nora Spinks, director
campus behind. Sopik declined to say where
rapidly shaping up to be one of She admits the closure sur- or when the program would be
the biggest issues facing becomes a of Work-Life Harmony
Enterprises Inc., an
rounds the Christian holiday of expanded in Canada if the pilot
employers this year, according Christmas and the university proves successful. “I tell our
win-win international research
has a multicultural staff. clients that if there is a demand,
and consulting firm based
An estimated half a million
Canadian workers experience
situation. ” in Toronto A Toronto judge came under
harsh criticism late last year for
we will be there for them,” she
at least some form of depres- ordering an evergreen Christ- The Canadian Press reports
sion, often affecting their ability mas tree moved to the back that, a c c o rding to Statistics
to think, concentrate and func- QUOTE . . . hallway outside her courtroom, Canada, 70 per cent of care-
tion properly in their jobs, a saying it was discriminatory to givers were also trying to hold
Statistics Canada survey other religions. down a job at the same time,
released in January shows
“Nearly eight out of 10 “I think too “But, so far, nobody has
objected. We live in a Western
with six in 10 people providing
“high-intensity” elder care say-
workers who had experienced
depression in the year before
many women feel c u l t u re that creates breaks
around these statutory holidays
ing occasional relief would be
important to them.
they were interviewed reported guilty they can’t like Christmas Day and Boxing In some of the groups
that the symptoms had inter- D ay. Everyone comes back surveyed, up to 21 per cent
fered with their ability to work, be the best at much more refreshed and pro- reported that the demands of
at least to some extent,” ductive.” caring for aging parents might
Statistics Canada re s e a rc h e r
everything. It’s Parnass says U of T has also be enough to force them to
Heather Gilmour and all about taking had a family care office for re t i re earlier than they had
University of Calgary professor almost a decade that looks after planned.
Scott Patterson wrote in the time to relax employees, students and even Sopik, who was in Calgary
report. their families’ needs. for the first few days of the pilot
The study showed depressed and keeping – Victoria Sopik, One of those services for project, says she received all
workers reported an average of
32 days of the past year where
things in president of Toronto-
based Kids & Co.
employees is emergency back-
up child care, offered through
kinds of positive feedback.
“One woman said the last
their symptoms left them either
unable to carry out normal
perspective. ” Toronto-based Kids & Co.
Company president Victoria
five years she’s wanted to take
her kids to Disney World, but
activities or totally unable to Sopik, a mother of eight her- was worried about her elderly
work. self, says companies have con- mom at the same time and
Data obtained during the policy and process, though. It’s to share the responsibilities tracts that subsidize regular or didn’t want to leave her behind
report showed employers are one thing when you have some other way,” says Spinks. emergency child care for their while the family went on
increasingly offering employee- someone come to their manag- Managing work and lifestyle employees. vacation.
assistance programs and other er and say they want the after- was already on the agenda by In most cases, the child-care “Now she can take her kids
supports as stress and depression noon off to stay home with the time about 4,000 members c e n t res are close to where to Disney World and not have
is quickly becoming the leading their sick toddler. Most man- of the Human Resources employees work, such as the stress of worrying about her
cause of disability claims in agers will be understanding and Professionals Association of London House in Calgary or mother,” says Sopik. “That
Canada. say no problem,” says Spinks. Ontario (HRPAO) arrived in the Ford auto plant in Oakville, sends a huge message for com-
The issue has even caught the “What happens if you have Toronto late last month. Ont. panies who provide the service
attention of Canada’s labour someone else who tells their “The benefits to an employer Her client list includes some for their employees.”
minister in Ottawa, who was manager it’s such a beautiful are huge,” says Rosie Parnass, of the country’s top law firms, Sopik adds that when it
scheduled to travel to Va n- spring day and they want to go director of staff and organiza- banks and telecommunications comes to home life, she tries to
couver and Toronto for round- golfing? That’s what’s important tional development at the firms. c reate balance by delegating
table discussions. to that particular employee.You University of Toronto (U of During the current tax sea- and not requiring perfection in
The minister has asked for need to create a culture of trust, T). “It’s not just lost productiv- son, she says the company everything.
advice on making it mandatory honesty and most of all, flexi- ity and employee turnover at can even arrange for the centres As a golfer, she says she might
in the Canada Labour Code for bility.” stake, either. A happier work- to stay open extra hours for go out for a warm summer
employers to create some sort Spinks adds that most work- place has benefits for everyone staff of one national accounting afternoon on the course.
of work-life program, says Nora life programs don’t have to be all around.” firm. But if she doesn’t end up
Spinks, director of Work-Life expensive for the employer. Parnass says while one of the Kids and Co. made headlines with a perfect score, that’s
Harmony Enterprises Inc., a An employee might have biggest indicators of work-life last year when it launched the not the “end of the world” to
Toronto-based international problems commuting to work pro blems in an organization country’s first 24-hour day-care her.
research and consulting firm. during rush hour, for example. can be absenteeism, another centre in downtown Toronto. “I think too many women
“Once companies begin to Having them work from 7 a.m. problem now facing employers Surprisingly enough, however, feel guilty they can’t be the best
realize people have a life out- to 3 p.m. or similar flexible is “presenteeism” – employees it wasn’t just shift workers that at everything. It’s all about tak-
side of work and embrace that, hours might make a big differ- who show up for work, but took advantage of the child- ing time to relax and keeping
then the entire dynamic begins ence for them. aren’t really engaged in what care offer. things in perspective,” she
to change and it becomes a “Sometimes, all it requires is a they are doing. “There are all sorts of possi- explains.
win-win situation,” she little bit of flexibility. Even in Parnass was scheduled to bilities, like date night for Mom Web Watch:
explains. retail where you are bound by present a workshop on the and Dad, or even a date lunch. www.kidsandcompany.ca
“A lot of companies will run set hours for opening and clos- opening day of the HRPAO Moms can go grocery shop- www.worklifeharmony.ca
into difficulty when they leave ing, the same person doesn’t nce about the link
c o n f e re ping, run errands, do all kinds www.utoronto.ca
it to the discretion of managers have to open the business every between work-life strategies, of things,” s ays Sopik. (David Hatton can be reached at
rather than having a formal single day.You can vary it or try staff recruitment and retention. “Teenagers nowa d ays don’t firstname.lastname@example.org)
February 9, 2007 Page 35
Energy firm’s CFO to tackle other interests
Business Edge VP and CFO Randall (TSX:ONC, Nasdaq:ONCY) she was a principal in the law
MOVING ON Henderson is no longer has appointed Mary Ann firm of Fish & Richardson.
heyenne Energy Inc. with the company. Dillahunty as VP of intellec- Oncolytics is a Calgary-
C (TSXV:CHY) says
Adeline Roth has resigned as
Cave was most recently a
consulting adviser for a group
CE Franklin provides
products and services to the
tual property. Dillahunty has
helped develop the company’s
based biotech company
focused on the development of
vice-president of finance and of U.S.-based oil and gas Canadian oil and gas industry. intellectual property portfolio oncolytic viruses as potential
chief financial officer to pursue companies. Christensen was Corporate office is in Calgary. since 1999 in her role as cancer treatments.
other interests. most recently employed as the ■ ■ ■ external patent counsel.
Cheyenne develops and VP of engineering for Piper Oncolytics Biotech Inc. Prior to joining Oncolytics, See MOVING ON Page 37
produces crude oil and natural Energy Inc.
gas, primarily in Western Orton was previously
Canada. Its head office is in
■ ■ ■
employed at Piper as the VP of
land. Mitchell was most
recently employed as the VP of
invest in paradise
PLAYA DEL CARMEN
Gienow Windows & exploration at Atlas Energy
Doors Income Fund Ltd.
(TSX:GIF.UN) has appointed Davison was most recently
Mike Lefroy as president and employed as the VP of engi-
CEO of Gienow Manage- neering at Atlas. Jamieson was In the Mayan Riviera with an Experienced Canadian developer
ment Inc., the administrator most recently the VP controller
of the fund, effective May 1. at Atlas.
Most recently Lefroy was ■ ■ ■
employed by Myers Industries Hill & Knowlton Canada
Inc. as a managing director. is growing its health-care
He replaces David Munro, practice in Edmonton with the
who will continue as chairman hiring of Alyssa Haunholter.
of the board.The management She was previously executive
change comes as the fund says assistant to the former Alberta
it is evaluating strategic and minister of health and well-
financial alternatives. ness.
The Calgary-based fund Hill & Knowlton Canada
is one of the largest is a public affairs and public
Canadian window and door relations firm with offices in DOUBLE-DIGIT APPRECIATION AND
manufacturers. eight cities across the country.
■ ■ ■ ■ ■ ■ EXCEPTIONAL RENTAL INCOME
David Bell,VP of Acrodex has appointed
operations for Castle David Walsh to the role of With direct flights from Canada's major airports, Playa del Carmen is ideally located in the
Rock Petroleum Ltd. vice-president of marketing
middle of the Mayan Riviera.Think golf, snorkeling, scuba diving, deep sea fishing & more.
(TSXV:RCK.A, RCK.B) has and corporate development. IT
resigned after two years with industry veteran Walsh comes Just minutes from the famous palm-lined beaches and crystal clear waters of the Caribbean.
the company. to Acrodex from his own
Based in Calgary, Castle consulting company, Decipher
Rock is focused on oil and Consulting Ltd.
natural gas reserves in Western Acrodex is an enterprise- Resident Suites at The Royal Oasis
Canada. wide technology solutions
■ ■ ■ provider with its head office in
We are in the finishing stages and just a few ownership and
Hugh Pattillo has resigned Edmonton and branch offices co-ownership opportunities remain.
as an officer and director of in Calgary, Fort McMurray, SOLD OUT!
C1 Energy Ltd. (TSX:CTT). Winnipeg and Toronto.
Don Wood has been ■ ■ ■
appointed as the Calgary TC PipeLines, GP, Inc.,
company’s president, CEO and general partner of TC
a director. PipeLines, LP (the partner- Arena Blanca
He joined C1 in June of ship), has made some changes
last year and previously served to the partnership’s executive 52 luxury condos, each featuring nearly 1300 sq. ft., 2 master
as C1’s executive VP and suite. bedrooms, c/w ensuites, 5-star finishes, underground parking, rooftop
COO. Greg Lohnes will step terrace with 2 pools, Jacuzzis, fitness center and private entertainment
The change of command down as chief financial officer
areas, on-site professional management, rental management –
comes as C1 explores strategic but becomes a director.
alternatives for its future. Mark Zimmerman has only minutes from famous 5 Avenue and Playa’s best beaches.
C1 is an exploration-focused been promoted to president. Limited opportunities available from $79,000 (quarter ownership) to $269,000 (full ownership).
junior E&P company with Zimmerman was previously PRIORITY RESERVATIONS NOW BEING ACCEPTED
core production base in the VP of business development
Peace River Arch. for the partnership.
■ ■ ■ Amy Leong, controller for
2937077 Canada Inc. of the partnership, continues in Pueblo Punta Young
Calgary has completed a this role and is designated
management reorganization principal financial officer. Rare Ocean-front opportunity featuring private beach clubs, 2 master
to orient the corporation as Sean Brett has been bedrooms, c/w ensuites, 5-star finishes, private rooftop terraces with
an oil and gas development appointed VP and treasurer for Jacuzzis, wet bars, grills, four 10,000 sq. ft. pools, on-site professional
company. the partnership.
management. 171 units in 4 phases, Phase I and II already 40% sold!!!
The management has been TC PipeLines, LP has
reconstituted to include Greg interests in more than 3,600 From $129,000 (quarter ownership) to $525,000 (full ownership).
Cave as president and chief miles of U.S. interstate natural PRIORITY RESERVATIONS NOW BEING ACCEPTED
operating officer; Dave gas pipelines. It is managed by
Christensen as vice-president TC PipeLines GP, Inc., a
of corporate development; wholly owned subsidiary of CONTACT: 403.630.2723
Deric Orton as VP of land; TransCanada Corp. email@example.com
Paul Mitchell as VP of explo- (TSX:TRP) of Calgary.
ration; Ron Davison as VP of ■ ■ ■ OR: 403.816.0700
engineering; and Dennis CE Franklin Ltd. firstname.lastname@example.org
Jamieson as VP of finance. (TSX:CFT, AMEX:CFK) says
Page 36 February 9, 2007
Visit to Tibet inspires store owner’s vision
an offering to Buddha but also
Profits from used for health purposes, is
made from sandalwood, agura
Vancouver shop and other woods that are
unique to Tibet and nearby
to aid life work regions.
Although Tibet is considered
of Buddhists somewhat autonomous, China’s
control has resulted in protests
throughout the Western world.
By Monte Stewart In 2005, p ro t e s t e rs chanted
Business Edge “Free Tibet now!” at various
ve nues during Chinese
ane Ho stands on a ladder President Hu Jintao’s brief visit
and carefully peels away the to Vancouver.
red cover on the name of “We try not to talk about the
her new store. political (situation),” says Ho,
Down below, a short bald when asked if she is concerned
man flings rice at her. the store will anger the Chinese
The man, dressed in maroon g overnment. “The Chinese
robes, is known in English as government doesn’t really mat-
Martin Cheng. He is a Tibetan ter, because we’re sending the
Buddhist monk and is said to money to Tibet. The Chinese
rank slightly lower than the government can’t stop us from
Dalai Lama. doing this.”
Cheng has chosen this quiet The inspiration to open the
Saturday morning to come to store came last summer when
the Va n c o u ver suburb of Photos by Bayne Stanley, Business Edge she visited Tibet. She expects
Richmond from his home in most of her customers to be
Hong Kong and bless Ho’s Chi Tibetan Buddhist monk Martin Cheng chants as he blesses the Buddhists, but says the statues
Cheong Buddha store. Chi Cheong Buddha store in Richmond, B.C., above, which will also will attract Canadians who
Cheng selected the day – Jan. feature statues from the Himalayan territory such as the one travel to Cheng’s store in Hong
20 – for the official opening Kong.
held by owner Jane Ho, left.
ceremony because he deemed Ho expects to generate
it the date that will bring the Tibet. About 10 years ago, he convert to Tibetan Buddhism. $50,000 to $60,000 in reve nu e s
small shop the most luck and planned to move to Tibet and She moved back to Vancouver this fiscal year. Reve nues will be
ensure its success. work in a temple full time, bu t and now, after taking a self- low because the store will only
“This is not only a business,” he says the master of his employment course at Douglas operate for six months before its
says Ho. “This is a purpose.” “house” instructed him to serve College, she’s putting $100,000 June 30 ye a rend date, she adds.
Ho, a Tibetan Buddhist, is from the business world instead. of the sale proceeds into her In addition to social pro-
donating most of her profits to For the past 10 years, he has new venture. grams, the money will help
temples across Tibet. operated a similar store, which The store’s name is an abbre- cover the monks’ living expens-
Chi Cheong Buddha sells also has the name Chi Cheong viation of Ho’s company Chi es so that they can focus on
handmade Buddha statues Buddha, in Hong Kong. The Cheong Buddha Enterprises their practices without having
(some of which take a year to store also donates the bulk of its Inc. to worry about how to pay for
make), incense, figurines and profits to Tibetan Buddhists. The Buddha statues sell for food, clothing and shelter.
tapestries that were produced Ho, 44, is a good friend of an average price of $1,500, but Their temples often double
mostly in Tibet. ples. Other shops sell Buddha Cheng’s sister and met him at a some fetch as much as $3,000. as doctors’ offices and other
The disputed poverty-strick- figures, but they are not the dinner party in 1998, when she “Those statues are kept in community-service outlets.
en Himalayan territory has ones produced in temples. was “really desperate and very (Tibetan Buddhist) temples for “If we are helping the
been part of China since “We are trying to draw the negative.” years,” says Ho. “They’re not temples,” adds Ho, “we are
Beijing dissolved the Tibetan public’s attention to the situa- Born in Hong Kong, she had made in the factory. Some of helping the people.”
government in 1959 and the tion in Tibet, the monks and emigrated to Va n c o u ver in the pieces are unique.” (Monte Stewart can be reached at
Dalai Lama fled to India. the people who are liv i n g 1980, gone back to Hong Kong The incense, which is used as email@example.com)
The modest 320-sq.-ft. shop’s there,” says Cheng.“We are also after Expo ’86 and moved back
walls are bright yellow. One trying to bring Tibetan incense to Canada, this time settling in
long yellow shelf on the right-
hand side of the room houses a
and statues to North America as
part of the message that people
Calgary, in 1997.
But she was unhappy in her
PROTECT YOUR PROFITS
plethora of purple, pink, yellow,
green and blue boxes, and cans
in Tibet need help, and we want
to give information to the
marriage, which would end in
divorce, and her career in the AND YOUR COMPANY
of incense. Small copper people that are living here.” banking industry, where she felt
Buddhas, featuring intricate Cheng, 46, was born in Hong she was being passed up for
handiwork, and jade figurines Kong and called to the Tibetan promotions because of her gen-
illustrating elephants and other Buddhist ministry at the age of der.
animals are stored in glass cases, four. He spent much of his The meeting with Cheng,
and dark red and black tapes- youth travelling and working whom she describes as her
tries hang near the ceiling. b e t ween his hometown and “master,” c o nvinced Ho to SMC makes your company safe - everywhere
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February 9, 2007 Page 37
MOVING ON from Page 35
IT firm builds up executive team
Newly established Calgary Inc., where he held the (TSX:HSE) “to pursue other
company inUnison position of VP of finance. interests,” the company says.
Technology Services Ltd. Teras is a junior mining and Calgary-based Husky did
has appointed three new exploration company located not immediately provide
members to its executive in Calgary that is focused on details on who will succeed
team. two gold properties in Fraser as the company’s CFO.
Tim Wasilieff becomes Montana. – with files from
CEO, Jeff Connery chief ■ ■ ■ The Canadian Press
information officer and Doug Fraser is leaving his (E-mail notices and photos at
Jamie Stewart VP of partner position as CFO of oilpatch least two weeks before publication
services and planning. major Husky Energy Inc. date to email@example.com)
The company is a subsidiary
of credit union First Calgary
Savings and B.C.-based
Wasilieff will continue to
serve in the role of senior VP
of operations at Envision
Connery previously served
as the joint CIO of Envision
and First Calgary.
Stewart was previously
Envision’s assistant VP of firstname.lastname@example.org
program integration. 403.252.8760 www.iloveyou2.tv
Launched in fall of 2006,
inUnison provides IT services
to credit unions.
■ ■ ■
Leslie Wright, CFO of the
Liquor Barn Income Fund
(TSX:LBN.UN), has resigned
to take another job in a
A search for a new CFO is
The Liquor Barn Income
Fund holds a 60-per-cent stake
in the Liquor Barn Limited
Where are we now and where are we going?
Partnership, which operates 59
private retail liquor stores in
Alberta and seven in British Sheraton Eau Claire Suites
Columbia. Wild Rose Room
■ ■ ■
WestJet Airlines March 5, 2007
(TSX:WJA) has appointed 5:00 pm to 7:30 pm
Vito Culmone its executive $39 per person
VP for finance and CFO.
Culmone, who will join Cash bar with hot hors d’ouvres
WestJet on March 1, had been
VP for commercial finance at
Culmone will take over John Brussa, of Burnett Duckworth and Palmer
from acting interim CFOs Ron Gratton, of PriceWaterhouse Coopers John Brussa
Janice Paget and Derek
Payne, who accepted the role
after the retirement of Sandy Mr. Brussa and Mr. Gratton will talk about the Governmental
Campbell in July 2006. process, the hearings in February, the rules, how trusts are expect-
Calgary-based WestJet is ed to transform in the next few years and what is coming down
Canada’s biggest discount
airline, offering scheduled the pipe (in regards to alternative structures to Income Trusts).
service with its 35-city North
American and Caribbean For more information and to register online visit:
■ ■ ■
Gary Browne has joined www.calgaryforum.com
Watch Resources Ltd.
(TSXV:WRL) as VP of land, a or contact Greg Shannon at Miller Thomson LLP (403) 298-2482 Ron Gratton
position he held with Energy
51 Inc. prior to that company’s
merger with Watch.
Calgary-based Watch is
engaged in the exploration and
production of petroleum and
■ ■ ■
Teras Resources Inc.
(TSXV:TRA) has hired a new
Trent Fedak comes from
Modus Group Management
Page 38 February 9, 2007
Dodge backs Ottawa’s plan on income trusts
Bank of Canada in the face of efficiency.
He said Tory government’s
which covers most Canadian
able to defer those taxes.
In an earlier appearance
This time he suggested that
if trusts don’t pay their
announcement that trusts “In . . . the majority of before the committee, Flaherty fair share of money to the
boss says move would be taxed in the same way Canadian bu s i n e s s e s , where said ordinary taxpayers would federal tre a s u ry it would
as regular corporations levelled innovation and new investment feel the pinch in their pocket- affect not only his tax plans
was overdue the corporate playing field and is critical, then the income trust books – starting with this but also his spending projec-
helped eliminate inefficiencies form of organization is not an spring’s federal budget – if tions.
The Canadian Press in capital markets. appropriate form of organiza- Ottawa doesn’t end its favoured The Conservative gove rn-
Some companies, he said, tion to maximize the contribu- treatment of income trusts. ment says it’s been losing at
The governor of the Bank of restructured themselves as trusts tion of that business.” Flaherty warned that contin- least $500 million a year by let-
Canada has endorsed Finance simply to reap tax benefits and The central bank “is not in uing to offer financial breaks to ting companies restru c t u re
Minister Jim Flaherty’s plan to not with an eye to business the tax game,” he said, but the trusts would imperil tax themselves as trusts, and thus
tax income trusts, saying the efficiency – and that reduced general principles argue that cuts planned for the general escape normal corporate tax
federal government should have their potential for productivity the tax system should not be public in his second budget, levies.
done it long ago. growth. biased in favour of any particu- widely expected in late March. “Clearly that would reduce
“Better late than never,” “By giving incentives that led lar model. “Our last budget re d u c e d my fiscal room to move, with
David Dodge said of Flaherty’s to the inappropriate use of the Flaherty’s announcement taxes in 29 different areas,” he respect to expenditures and
Oct. 31 announcement, which income trust form of organiza- removed that bias, he added. told the Commons finance with respect to tax reductions,”
sent shudders through the mar- tion, the tax system was actual- “Those changes at least make committee. said Flaherty.
ket and angered many investors ly creating inefficiencies in cap- the system more neutral and “ Without giving any t h i n g It was the latest political
whose portfolios suffered losses ital markets, inefficiencies that, more conducive to higher out- away, I can tell you that, had this argument deployed by the
when income trust stocks lost over time, would lead to lower put and better performance in g overnment not acted on Tories in defence of their deci-
value in a big selloff. levels of investment, output and the future,” he said. income trusts, any plans for sion to break a campaign prom-
Dodge appeared before the productivity.” The pre-October tax system further tax reductions in the ise from the last election and
Commons finance committee Income trusts, he said, are favoured income trusts, which next budget would be at risk.” start taxing trusts.
and said the income trust suited to businesses that do distributed most of their profits He wouldn’t go into detail The move sparked a market
model doesn’t fit most nothing but manage existing directly to investors and paid on his budget plans, but drove panic that saw the more than
Canadian businesses. assets and are not a good model little or no corporate tax. his point home again in later 250 income trusts operating in
However, the tax rules made for firms relying on innovation Investors we re taxed on comments outside the commit- Canada lose at least $20 billion
it attractive, even if it flew and investment for growth – their earnings, but many were tee room. in combined value.
Judge decides pipeline U.S. firms slammed in survey
hearings can go ahead The Canadian Press to assess global warming.
Ceres president Mindy
emissions, but only about a
quarter gave specific emissions
b rought federal energy and Many big U.S. companies are Lubber said companies that tra- targets and a timeline for
Stay lifted on environment officials together not doing enough to warn ditionally do not see themselves achieving reductions.
with Aboriginal groups along shareholders about the financial as big emitters of carbon diox- Peyton Fleming, a spokesman
sessions to deal the route was set up in 2002. risks associated with global ide and other greenhouse gases, for Ceres, said his organization
But the Dene Tha’, who num- warming, a new report asserts. including banks, insurance is not arguing that these com-
with Dene Tha’ ber about 2,500 members on The report, released jointly companies and retailers, need to panies are being overvalued by
s even re s e rves in Alberta, by Ceres, an env i ro n m e n t a l consider the financial risks investors. “What we’re saying is
The Canadian Press British Columbia and the investment gro u p, and the posed by climate change. that some companies may be
Northwest Territories, were Calvert Group, a mutual fund “Their inve s t o rs have the facing potential risks that
A judge has decided that all excluded from those discus- company, said corporate disclo- right to understand what their investors may not know about,”
scheduled social and environ- sions. sure of risks related to climate risks are and how they’re he said.
mental hearings into a pro- That’s because the final leg of change among S&P 500 com- addressing them,” she said. The report’s authors said the
posed $7-billion natural gas the pipeline and the infrastruc- panies has been “severely lack- The report found that 80 per most detailed responses were
pipeline down the Mackenzie ture connecting it to existing ing.” cent of the 228 American com- from the automobile, electricity
Valley can go ahead. networks would be in northern The authors highlighted the panies that responded to the and oil industries, where exec-
Federal Court Justice Alberta, falling under that fact that less than half of the carbon survey discussed the utives are more accustomed to
Michael Phelan has lifted a stay province’s jurisdiction. companies listed on the S&P need to reduce greenhouse gas thinking about climate change.
he issued last November on all The Dene Tha’ argue that 500 responded to a survey last
sessions of joint review panel omitting the connecting facili- year by the Carbon Disclosure ATTENTION BUSINESS OWNERS,
hearings that dealt with issues ty from the main hearings robs Project, an international effort
affecting the Dene Tha’ First them of any input. While all to collect information fro m PROFESSIONALS,
Nation. other Aboriginal groups have more than 2,100 companies. POTENTIAL INVESTORS
That means the sessions can some kind of representation on The project is backed by
Are you tired of getting a low return on your RRSPs and
go ahead as previously planned, the panel, the Dene Tha’ are large investors such as Goldman
not having the time to find other solid investments? If so,
which will help the hearings restricted to making a presenta- Sachs Group Inc., Morgan
finish earlier. But the panel still tion. Stanley and Switzerland’s UBS this will be the most important message you’ll ever read!
won’t be able to issue its final Phelan wrote the develop- AG. Don’t miss your chance to discover this investment opportunity,
report to the National Energy ment on Dene Tha’ lands was Coinciding with the report’s with a Limited time 21% RETURN. By trading just 90 minutes
Board until the Dene Tha con- just as much part of the re l e a s e, the world’s leading on a Wednesday evening you can learn about a great potential
cerns are dealt with. pipeline as any other work. scientists gathered in Paris investment opportunity that exceeds any returns you may be
“We’ve agreed to let them currently receiving on your RRSPs.
finish their hearings, but they’re
Schneider Group Consulting LIMITED SPACE!
still stopped from making their and Investments
final report,” said Dene Tha’ Please email your RSVP to:
invites you to our
lawyer Robert Freedman. INVESTMENT SEMINAR email@example.com with
Freedman said a meeting to Wednesday, Feb., 21, 7:30 your name and number to
discuss how to address the p.m. secure you seat or call
Dene Tha concerns is to be Holiday Inn Convention Centre 1-888-450-1859.
held in May after the panel is (4520-76 Ave.) YOU MUST ACT NOW –
scheduled to wrap up. RSVP quickly to reserve a seat
Phelan’s original ruling out as there are only 37 left!
of Federal Court in Vancouver This is a limited investment
said Ottawa failed to consult with room for only another
with the Dene Tha’. www.schneidergroup.ca $157,000 of funds.
A re g u l a t o ry process that
February 9, 2007 Page 39
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